Congo offers US gold, lithium, copper-cobalt under minerals pact
Officials from the Democratic Republic of Congo said that the state had sent the US a list of short-listed state assets that included gold, lithium, copper-cobalt, and manganese as part of a minerals partnership between the two countries, according to a Reuters report on January 20th.
The US has been trying to leverage peace deals with Congo to access their critical-minerals supply chain, as seen in the recent Trump-mediated Congo-Rwanda peace agreement. The US is making efforts to secure its access to critical resources in the resource dominance race against China.
China and the West are competing for access to African resources through infrastructure corridors. The US has recently backed the Lobito Corridor of the West with $553 million, and its Development Finance Corporation has signed a minerals marketing partnership with Congo state-owned miner Gecamines, in their strategic move to accelerate efforts in securing mineral resources.
A Joint Steering Committee made up of Congolese and U.S. officials will help put the partnership into action and start negotiations with American investors. The mineral partnership is one of the first tangible efforts of the US in turning peace and investment deals into US influence in the global mineral supply chain.
According to the International Energy Agency, China still dominates the refining of copper, lithium, cobalt, and rare earth materials, processing between 47% to 87% of the critical minerals. Chinese companies operating in Africa include CMOC, which is the world’s largest exporter of cobalt that is mainly sourced from Congo, Zijin, and Huayou, which exports copper from Congo.
According to sources, Congo plans to offer investors only the mining assets owned by state companies that have not already been given to other companies through partnerships or deals. The list of state companies includes Kisenge’s manganese, gold and cassiterite licences, Gecamines’ Mutoshi copper-cobalt project and germanium-processing venture, Sokimo’s four gold permits, Cominiere’s lithium licences, and Sakima’s coltan, gold and wolframite assets.
Congo holds 72% of cobalt reserves and supplies 74% of the world’s cobalt. As cobalt is used in batteries of EVs, mobile phones, and laptops, it is a highly essential mineral and is also referred to as ‘battery metal’. Congo is tightening its control over its mining sector, ensuring the government has leverage, while still engaging foreign investment to secure strategic ties, as is seen with the US.
Reuters, Maghrebi.org
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