China and DRC highlight need for ongoing Mining cooperation assessment
The People’s Republic of China and the Democratic Republic of Congo agree to regularly assess their mining cooperation with a view to its consolidation in the mutual and long-term interest of the two countries, and to settle any disputes arising in this cooperation in mutual trust and with pragmatism and fairness, in particular through friendly consultations.
This is one of the thirteen (13) key points included in the final declaration published on Friday, May 26, 2023, following the meeting between Chinese Presidents Xi Jinping and Congolese Presidents Félix Tshisekedi.
Engaged in a new era of now strategic and global partnership, the two States intend to rectify the situation following the pitfalls observed in the implementation of the famous “Chinese contract” concluded in 2008 between the Congolese Government and the group of Chinese companies ( GEC).
While the Congolese Government and this consortium of private Chinese companies continue their discussions with a view to a possible rebalancing of interests within the SICOMINES joint venture, the Chinese State undertakes to continue to encourage companies to accelerate the implementation of agreed infrastructure projects.
According to the said final declaration, “China will intensify its mining cooperation and encourage its companies to invest in the development project of the value chain of new energy batteries in the DRC to support efforts in the upgrading of industrial chains and the strengthening self-development skills.
Sources close to the Chamber of Mines of the Federation of Companies of Congo (FEC) indicate that the mining portfolio in the Democratic Republic of Congo is 70% controlled by Chinese companies.
In view of the industrialization projects that the Congolese government is nurturing, it is obvious that Chinese investments should increase further in the mining sector.
Indeed, the Congolese President, Félix Tshisekedi, has made the industrialization of the economy of the DRC his hobbyhorse. In particular, it is counting on the experience of the Chinese partner to build the local electric battery manufacturing industry.
The DRC has a good quantity of rare minerals such as lithium or cobalt essential for the manufacture of electric batteries.
In a recent report, let us recall, the Global Data firm reported that the turnover of the battery industry should exceed 168 billion US dollars by 2030, thus registering a compound annual growth rate (CAGR) of 14%.
The same report specified that the market will be pulled up by sales of lithium-ion batteries.
According to Global Data analyst Michael Orme, it is the Chinese battery manufacturer CATL that today symbolizes this dominance.
