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China Invests $7 Billion in Congo’s Mining Infrastructure Boost

The Democratic Republic of Congo will get $7 billion in finance from China under a revised minerals-for-infrastructure pact, according to the mining company behind the agreement.

According to the agreement, Gecamines, the Democratic Republic of Congo’s state miner, will get a 1.2% royalty on the earnings of the copper-cobalt partnership known as Sicomines.

Furthermore, Gecamines has the right to commercialize 32% of the venture’s output. Sicomines described the agreement as “a significant step in promoting new development in cooperation between China and the DRC,” in a post on X.

Congolese President Felix Tshisekedi’s administration acknowledged the remark on Saturday, but declined to speak further, Bloomberg reported.

Tshisekedi has been pressing for a restructure of the countries’ 2008 $6.2 billion contract, which he claims delivered little value to the DRC, a major producer of green-energy metals. The initial agreement guaranteed $3 billion in infrastructure projects supported by Sicomines profits.

However, the DRC government says that less than one-third of the allotted development money have ever been disbursed.

Throughout the renegotiations, Sicomines maintained that its stake was unaltered. China Railway Group Ltd. is the largest shareholder, followed by Power Construction Corporation of China (PowerChina) and Zhejiang Huayou Cobalt Co. Gecamines has a 32% share in the venture.

Congo is the world’s greatest producer of cobalt, a key component in electric car and mobile phone batteries. Over 200,000 individuals are said to work in informal cobalt mining in the Democratic Republic of the Congo. The country is also the world’s third-largest copper producer, with Chinese businesses dominating the mining environment.

Written by PH

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