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China-Africa relations
ChinaDiplomacy

Chinese firms agree to raise investment in Democratic Republic of Congo copper-cobalt mining deal

  • Sinohydro Corp and China Railway Group will increase input from US$3 billion to US$7 billion as part of the Sicomines joint venture
  • President Félix Tshisekedi had been pushing for extra funding as part of his drive to renegotiate ‘unequal’ agreements with foreign companies

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Congo’s President Felix Tshisekedi announced the new deal when he was sworn in for a second term as president last month. Photo: AP
Jevans Nyabiage

Two Chinese companies have agreed to increase their investment in the Democratic Republic of the Congo as part of a minerals-for-infrastructure deal.

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The agreement has been described by analysts as a political victory for President Félix Tshisekedi, who announced the agreement as he was sworn in for his second term in office last month.

Sinohydro Corp and China Railway Group will now invest up to US$7 billion in infrastructure as part of a new agreement over the Sicomines copper and cobalt joint venture.

Tshisekedi had been pushing for an overhaul of mining contracts he said had been “poorly negotiated” under his predecessor Joseph Kabila, and raised the issue during a visit to China last year.

The Chinese companies had previously agreed to invest US$3 billion in infrastructure, funded from the mine’s revenue, and another US$3 billion to develop a copper and cobalt mine, in exchange for a 68 per cent stake in the joint venture with the state-owned Congolese company Gecamines.

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But in February last year, the DRC’s General Inspectorate of Finance released a report saying the ­country had not been adequately compensated for the copper and cobalt reserves it contributed to the deal.

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