China and Congo agree to regular checks on mining deals
- Congolese president is in China to overhaul mining contracts signed under his predecessor and woo Chinese investment
- The central African nation is a major source of cobalt for China’s green energy transition
The presidents of China and the Democratic Republic of the Congo have agreed to regularly assess mining cooperation in the long-term interests of both countries, according to a joint statement on Friday.
On Friday, Xi welcomed his Congolese counterpart with a guard of honour and a 21-gun salute at Tiananmen Square, before talks in the Great Hall of the People.
Xi said China was ready to strengthen its partnership with Kinshasa and ramp up investment in the central African nation.
The two leaders also agreed to upgrade bilateral relations to a comprehensive strategic cooperative partnership – the highest level of bilateral relations for China.
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In return for cobalt and copper, the Chinese companies agreed to invest US$3 billion in the mining project in the mineral-rich Katanga province, as well as US$3.2 billion in infrastructure in general.
But in February, the Congolese General Inspectorate of Finance released a report saying the country had not been adequately compensated for the copper and cobalt reserves it contributed.
The report said Chinese companies had exploited about US$10 billion in minerals, but had only built infrastructure with an estimated value of US$822 million.
China’s embassy in the DRC and Sicomines strongly contested the report, which the embassy said was “full of prejudice”.
Congolese officials said in Beijing that negotiations were ongoing and that a new mining agreement for the project would hopefully be signed by the end of the year.
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On Friday, Xi said China would continue to encourage Chinese enterprises to accelerate the implementation of agreed infrastructure projects and strengthen cooperation with the DRC in the mining industry.
According to the joint statement, China will encourage Chinese enterprises to invest in the DRC’s new energy battery value chain development projects, and support upgrades to its industrial chain.
The presidents also agreed that problems arising from the cooperation could be “solved through friendly consultations”.
The two countries would promote high-quality development of investment “in line with the principle of marketisation and the spirit of the contract”.
China would also take part in building infrastructure but the projects would be formulated by the DRC.
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But the DRC will have to improve the business environment and protect the rights of Chinese companies operating in the country.
Chinese companies have complained in the past of unfair treatment, especially on taxation matters.
Chinese workers have also been the victims of attacks and kidnappings in eastern DRC, Katanga and Lualaba, where Chinese companies have mining interests.
When the situation worsened last year, the Chinese Ministry of Public Security sent a team of experts to help find the solution to the security troubles.
Tshisekedi’s administration is battling M23 rebels in the eastern DRC, which Kinshasa claims are backed by Rwanda – claims that Rwanda denies.
Xi said on Friday that China supported efforts “to restore peace and security in eastern Congo”.
“China condemns the violence and human rights abuses committed by various armed groups … and supports the rebuilding of trust and peace,” Xi said.
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Tshisekedi thanked China for its long-term support for Congo’s economic and social development.
“Congo is willing to work with China to deepen cooperation in the fields of economy, trade, resources, infrastructure, medical care and health,” he said.
The two presidents witnessed the signing of cooperation agreements that included accords on the exploitation of natural resources, the development of a digital economy, information exchange, green growth, and television networks.
The DRC is strategically important for China’s transition to green energy – the country supplies more than 60 per cent of China’s cobalt, a key component in batteries for electric vehicles and electronics.
Two-way trade with the DRC stood at US$21.9 billion in 2022, a 51.7 per cent increase compared to the previous year, according to data from China’s customs.
From Beijing, Tshisekedi and his team will visit Shanghai, Shenzhen and Hong Kong.
