DRC: US encourages government to review certain mining contracts
The United States has its sights set on Congolese mines. World power, the country of Joe Biden is aware of the place occupied by the DRC in world geopolitics. In 2019 alone, the DRC provided 71% of the world’s cobalt production (100,000 tons out of 140,000). This ore is essential for the manufacture of batteries for smartphones or electric cars. The Congolese extractive sector contributes over 70% of export earnings and is the main driver of the country’s economic growth. The country is dependent on China, which buys around 58% of its exports, if we only take the figures for 2018.
It turns out, however, that Felix Tshisekedi considers many contracts signed with Chinese firms to be leonine. He is essentially looking at the execution of the Sino-Congolese contract. He also called at the end of 2020 for the establishment of a Sino-Congolese joint commission which is supposed to look into all subjects of common interest, including the technical and financial audit of Sino-Congolese Mines. (SICOMINES) and the establishment of a mechanism ensuring transparency in the management and operation of this company.
In several meetings, Felix Tshisekedi insisted on the need to put an end to the imbalance between parties. According to him, this requires the revision of certain clauses of the contract or collaboration agreement between the DRC and the Group of Chinese companies and the contract or agreement of the Joint Venture SICOMINES. This position is not to the liking of the Chinese side. In September 2021, the Chinese ambassador to the DRC, Zhu Jing considered that the DRC is the main beneficiary of this collaboration. It indicated that during the first seven months of 2021, the DRC had earned 4.7 billion USD out of the 7.9 billion USD made in Sino-Congolese trade. He denounced a campaign of dialogue orchestrated, according to him, by the USA.
On August 9, the United States State Department returned to this question. In a statement, he specified that “the United States supports the decision of the DRC government to review mining contracts and greater accountability in the sector”. He cites a few points on which the Chinese are often accused: “We encourage the DRC to continue its collaboration and to work on tax transparency, labor rights and respect for environmental, social and governance standards for the mining sector. The United States is providing more than $30 million in assistance to help the DRC promote responsible and sustainable mining practices.”
For context, the United States and the DRC entered into the Privileged Partnership for Peace, Prosperity, and Environmental Preservation in April 2019. This initiative is supposed to be the framework for bilateral cooperation between the two countries. The United States considers Felix Tshisekedi as an ally. The power of Kinshasa is perceived, according to the State Department, as “an unwavering partner in advancing its mutual global priorities, including the fight against the climate crisis, the fight against illicit trafficking, the response to multiple security and humanitarian crises , promoting respect for democracy and human rights, securing supply chains of strategic minerals necessary for the global transition to cleaner forms of energy.
