DRC Aims to Diversify Mining Sector with New Investors and Reduce China’s Dominance
The Democratic Republic of Congo (DRC) is actively seeking new investors to diversify its mining sector, currently dominated by China, according to Mines Minister Kizito Pakabomba.
The DRC, home to world-class deposits of key metals like copper and cobalt, is looking to attract a wider range of investors by streamlining customs and tax processes and partnering with the United Arab Emirates.
In an interview, Pakabomba outlined plans to modernize the country’s infrastructure, including revamping a railway system that would facilitate the export of minerals via a port along the Atlantic Ocean, providing easier access to U.S. and European markets.
“We want to attract better, more, and diversified investors,” Pakabomba said. These efforts come as the DRC plays a central role in the global metals market, especially in the production of critical minerals essential for the global energy transition.
The country recently surpassed Peru to become the world’s second-largest copper producer and remains the largest source of cobalt, a key material in electric vehicle batteries.
The DRC government is making strategic decisions regarding the ownership and control of its mining assets. This year, it blocked the proposed sale of Trafigura-backed Chemaf Resources Ltd., a copper and cobalt miner, to China’s Norin Mining Ltd.
“We’ve stopped this transaction,” Pakabomba said, adding that if Chemaf seeks an ownership change, the government will explore other options.
The DRC has grown frustrated by its limited control over its mining sector, particularly in cobalt, where Chinese companies, such as CMOC Ltd., have dominated production.
Despite accounting for nearly three-quarters of global cobalt output, a surge in production has driven prices to an eight-year low. The government is now exploring ways to gain more control over cobalt exports.
A key component of the DRC’s strategy is improving the country’s transportation infrastructure. The government plans to enhance the railway from Kolwezi, a mining hub, to the Angolan border, where it would connect to the Lobito port on the Atlantic Ocean.
The U.S. has already committed $553 million to refurbish the Angolan portion of the railway, while Congo is evaluating the reconstruction of its side, with a tender process being considered.
“This railway project will cost $245 million over the first two years of construction,” Pakabomba said, emphasizing the importance of diversifying export routes beyond the East.
The DRC’s foreign minister, Therese Kayikwamba Wagner, added that many companies are already showing interest in the project, which is expected to enhance the country’s mining export capabilities and further attract international investors.
