China follows DRC’s lead on mining regulations

Following the Democratic Republic of the Congo’s (DRC) suspension of Chinese companies over illegal activities, Beijing said it will impose sanctions on the businesses if they are found guilty. They must also leave South Kivu province, according to Wu Peng, the director-general of the department of African Affairs at China’s foreign ministry.

Felix Tshisekedi, the president of the Democratic Republic of the Congo (DRC), has called for a review of mining contracts signed with China in 2008 by his predecessor, saying he wanted to get fairer deals. A statement after a cabinet meeting said Tshisekedi called for the “technical and financial details of Sino-Congolese contracts” at the next meeting.  It is rare for China to condemn the activities of its own companies in Africa and elsewhere, despite existing accusations of illegal operations, human rights abuses and environmental violations.

Mining industry

The mining industry of the Democratic Republic of the Congo plays a significant role in the world’s supply of cobalt, copper, diamond, tantalum, tin, gold and produces over 70% of globally produced cobalt. It is the Democratic Republic of the Congo’s largest source of export income. The DRC was the third-largest producer of industrial diamonds in 2019, contributing about 21% of global production.

The country boasts some of the highest quality copper reserves globally, with some of the mines estimated to contain grades above 3%, significantly higher than the global average of 0.6 – 0.8%.  International mining companies attracted by high-grade and low-cost mines are increasingly attracted to the DRC’s copper wealth situated on the copper belt in the southern part of the country.  In 2019, the DRC produced 1.43 million tons of copper.  With operating costs that are lower than traditional gold-producing countries like South Africa, DRC’s gold mining sector is also witnessing renewed interest from mining companies.