DR Congo to review Chinese mining contracts
The Democratic Republic of Congo’s National Assembly has called for a review of the country’s mining agreements with China. The aim is to increase the DRC’s share of the revenue generated by foreign-backed mining in the country.
The Chinese majority joint venture, Sino Congolaise des Mines (Sicomines), has been singled out as a significant target for an increase in tax rate. The DRC state auditor has also sought $17bn in infrastructure investment from Sinohydro, the Chinese corporation that holds a controlling stake in Sicomines.
However, the auditors have found that Sicomines spent less than $1bn of the $3bn initially pledged. The Congolese government hopes to finalize the amendment of the initial agreement with Sicomines by the end of 2023. The Institute for Chinese Studies reports that nearly 70% of the DRC’s mining operations are Chinese-controlled.
Mining Industry in Congo
“It is not normal that those with whom our country has signed exploitation contracts are getting richer while our people remain poor. It is time for the country to readjust its contracts with the miners in order to seal win-win partnerships,” said President Tshisekedi.
The mining industry of the Democratic Republic of the Congo produces copper, diamonds, tantalum, tin, gold, and more than 63% of global cobalt production. Minerals and petroleum are central to the DRC’s economy, making up more than 95% of value of its exports.
The Democratic Republic of the Congo (DRC) is one of the wealthiest countries in terms of untapped resource wealth and has an estimated US$24 trillion in untapped mineral deposits, including the world’s largest reserves of coltan (where elements niobium and tantalum are extracted) and significant quantities of the world’s cobalt and lithium.
