The Democratic Republic of Congo is seeking new mining investments from Saudi Arabia to reduce dependency on Chinese companies in the cobalt and copper sectors. With 80% of mining operations linked to China, government officials aim to diversify partnerships to safeguard against economic risks and are also engaging with investors from the European Union and India.
The Democratic Republic of Congo, the leading global supplier of cobalt, is actively seeking investment from Saudi Arabian mining firms to diversify its economic partnerships and reduce dependence on Chinese investors, according to Marcellin Paluku, a senior official in Congo’s Ministry of Mines. Paluku highlighted that the country also possesses vast reserves of copper and other essential minerals and aims to establish multiple partnerships to mitigate the risks associated with relying predominantly on China for mining investments.
Paluku indicated that currently, approximately 80% of Congo’s mining operations are linked to Chinese entities, which he views as a significant economic risk. He stated, “You never know what can happen…So that means we are now trying to diversify our partnerships so we don’t rely on only one partner.” As part of this diversification strategy, Congo is engaging with potential investors from the European Union and India, moving away from joint ventures that disproportionately favor foreign investors. Paluku emphasized the intention to encourage diverse business engagements, stating, “We are talking to all the people who are open to do business with us.”
The Democratic Republic of Congo stands as a critical player in the global mining industry, particularly regarding cobalt, a key component in rechargeable batteries and electric vehicles. With the rise of electric mobility, demand for cobalt has soared, leading to increased investments in the country’s mining sector, primarily from Chinese firms. Over the past few years, Chinese companies, many of which have governmental backing, have significantly intensified their investments, resulting in a monopoly-like scenario in some sectors of the Congolese mining market. In light of this heavy reliance on Chinese investments, the Congolese government is now pursuing a more diversified approach to foreign partnerships in order to ensure long-term economic stability and security in the mining sector. This shift not only aims to attract new investors but also to foster a more balanced investment framework that benefits the country’s economy as a whole.
The Democratic Republic of Congo is ambitiously working to reduce its dependency on Chinese mining companies by courting Saudi Arabian investors, alongside potential partners from the European Union and India. With approximately 80% of its mining operations tied to a single foreign partner, the Congolese government recognizes the economic vulnerability presented by such concentration. By diversifying its investment sources and reshaping joint venture agreements, Congo seeks to strengthen its mining sector and enhance economic resilience.
Original Source: www.mining.com
