https://sputnikglobe.com/20230123/dr-congo-president-urges-to-turn-62bln-mining-deal-with-china-into-win-win-1106621366.html
DR Congo President Urges to Turn $6.2Bln Mining Deal With China Into 'Win-Win'
DR Congo President Urges to Turn $6.2Bln Mining Deal With China Into 'Win-Win'
Sputnik International
DRC President Felix Tshisekedi has criticized a $6.2 billion mining deal with China, stating that the Central African nation, as the world’s biggest producer of key battery metals, hasn’t benefited from the contract.
2023-01-23T14:50+0000
2023-01-23T14:50+0000
2023-01-24T15:13+0000
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DRC President Felix Tshisekedi has criticized a $6.2 billion mining deal with China, stating that the Central African nation, as the world’s biggest producer of key battery metals, hasn’t benefited from the contract. The DRC is abundant with natural resources, including copper and cobalt, which are of high demand on international market as major components in electric vehicles. However, the country is one of the world’s least-developed countries. Therefore, it seeks to gain benefits from its own resources. The contract's review is part of the president's campaign to ensure that the DRC gets paid for providing its natural riches. In 2008, Tshisekedi’s predecessor Joseph Kabila signed a minerals-for-infrastructure contract with China. It stipulated that Chinese companies invest $3.2 billion in a copper-cobalt mine and another $3 billion in infrastructure construction. According to the contract, most of the minerals end up in China. At the same time, the DRC government claimed that China has released less than a third of the funds designated for infrastructure. The president recalled that the contract was signed at a period when the country was emerging from decades-long conflict, while the newly elected president was seeking financing. He underlined that the agreement "was badly drawn up" and failed to meet the interests of the nation. China’s ambassador to the DRC, Zhu Jing, for his part, stated that Chinese investment has created thousands of jobs in the country and lifted many Congolese out of poverty. The discussions, intended to improve the deal, have been going on for more than a year. The president noted that the negotiations are dragging as "the Chinese are the champions of marathon discussions," adding that DRC's government is now "undergoing this experience," but remains "optimistic."During the COP27 climate summit, which was held in November last year, the country's Prime Minister Jean-Michel Sama Lukonde once again insisted on a thorough review of the deal, highlighting that China has spent about $900 million on infrastructure so far, which is less than required by the agreement.
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central africa, drc, democratic republic of the congo, felix tshisekedi, president of the democratic republic of the congo, china, minerals-for-infrastructure contract, mining, copper-cobalt mine
central africa, drc, democratic republic of the congo, felix tshisekedi, president of the democratic republic of the congo, china, minerals-for-infrastructure contract, mining, copper-cobalt mine
DR Congo President Urges to Turn $6.2Bln Mining Deal With China Into 'Win-Win'
14:50 GMT 23.01.2023 (Updated: 15:13 GMT 24.01.2023) In September 2021, the Democratic Republic of the Congo (DRC) started a review of a mining deal with China, signed over a decade ago, in order to secure all the financing for infrastructure projects that was promised under the agreement, as well as a share of the profits, which have recently surged due to rising commodity prices.
DRC President Felix Tshisekedi has criticized a $6.2 billion
mining deal with China, stating that the Central African nation, as the world’s biggest producer of key battery metals, hasn’t benefited from the contract.
"The Chinese, they’ve made a lot of money and made a lot of profit from this contract" Tshisekedi told journalists on the sidelines of the World Economic Forum in Davos, Switzerland, adding: "Now our need is simply to re-balance things in a way that it becomes win-win."
The DRC is abundant with natural resources, including copper and cobalt, which are of high demand on international market as major components in electric vehicles. However, the country is one of the world’s least-developed countries. Therefore, it seeks to gain benefits from its own resources. The contract's review is part of the president's campaign to ensure that the DRC gets paid for providing its natural riches.
In 2008, Tshisekedi’s predecessor Joseph Kabila signed a minerals-for-infrastructure contract with China. It stipulated that Chinese companies invest $3.2 billion in a copper-cobalt mine and another $3 billion in infrastructure construction. According to the contract, most of the minerals end up in China. At the same time, the DRC government claimed that China has released less than a third of the funds designated for infrastructure.
“We’re happy to be friends with the Chinese, but the contract was badly drawn up, very badly,” Tshisekedi said. “Today, the Democratic Republic of Congo has derived no benefit from it. There’s nothing tangible, no positive impact, I’d say, for our population.”
The president recalled that the contract was signed at a period when the country was emerging from decades-long
conflict, while the newly elected president was seeking financing. He underlined that the agreement "was badly drawn up" and failed to meet the interests of the nation.
China’s ambassador to the DRC, Zhu Jing, for his part, stated that Chinese investment has created thousands of jobs in the country and lifted many Congolese out of poverty.
"If there is a problem in the distribution of the profit, it is rather internal Congolese problems," Jing said, as cited by media.
The discussions, intended to improve the deal, have been going on for more than a year. The president noted that the negotiations are dragging as "the
Chinese are the champions of marathon discussions," adding that DRC's government is now "undergoing this experience," but remains "optimistic."
During the COP27 climate summit, which was held in November last year, the country's Prime Minister Jean-Michel Sama Lukonde once again insisted on a thorough
review of the deal, highlighting that China has spent about $900 million on infrastructure so far, which is less than required by the agreement.
"When we look at the balance, it looks like they have taken more minerals than what has been built in terms of infrastructure," he stated, adding: "We have to quickly point out some new projects on our side in terms of infrastructure so that balance can be reduced."
