This archive report was first published on 30 August 2021.
On August 30, 2021, the Democratic Republic of Congo (DRC) announced plans to review its $6 billion infrastructure-for-minerals contract with Chinese investors, citing concerns that the country is not benefiting sufficiently.
The review comes as the DRC government seeks to reassess its reserves and resources at the Tenke Fungurume copper and cobalt mine, operated by China Molybdenum. The mine is a key part of the Sicomines venture, which was established in 2007 under a deal signed with Chinese firms Sinohydro Corp and China Railway Group Limited.
Under the 2007 deal, Sinohydro and China Railway agreed to build roads and hospitals in exchange for a 68% stake in the Sicomines venture. However, the DRC government has expressed concerns that the deal may not be fair or effective, and has formed a commission to reassess the agreement.
The review of the contract is part of a broader effort by the DRC government to assert its rights and interests in the country's mining sector. According to the DRC's chamber of mines, Chinese investors control around 70% of the country's mining sector.
Meanwhile, the DRC government plans to use half of the $1.45 billion allocated to the country through the International Monetary Fund's Special Drawing Rights to shore up its foreign currency reserves.
