Sunday, March 09, 2025

DRC mineral contract with China slammed by NGOs citing 'major losses'

A controversial mining deal between the DRC and China has come under the spotlight, as NGOs and civil society groups warn of financial losses and lack of transparency, one year after the 'contract of the century' was updated.



Workers walk in the copper-cobalt Mutanda Mine in southeastern Democratic Republic of Congo, on 19 June 2023. AFP - EMMET LIVINGSTONE

By: RFI
07/03/2025 -

A major mining agreement between the Democratic Republic of Congo and a Chinese consortium is facing renewed scrutiny, as civil society organisations allege that a recently renegotiated deal continues to put the Congolese state at a disadvantage.

The CNPAV coalition – "Le Congo n'est pas à vendre" or "Congo is not for sale" – comprises of anti-corruption NGOs who claim the new terms are still heavily skewed in favour of Chinese companies, resulting in a $132 million (€124 million) loss for the DRC in 2024 alone.

The group is urging the government to reopen negotiations to secure a fairer agreement.

The so-called "contract of the century" was originally signed in 2008 under then-president Joseph Kabila, granting Chinese companies access to extensive copper and cobalt mines in exchange for infrastructure development.

Renegotiated in early 2024, the agreement was meant to yield nearly $4 billion (€3.8 billion) in additional benefits for the Congolese.

However, watchdogs argue that the new terms fail to rectify previous imbalances.

Long road for DRC as it renegotiates minerals deal with China


Fluctuating markets


One of the primary concerns raised by CNPAV is the dependence of infrastructure funding on the fluctuating price of copper.

Under the revised terms, the DRC is supposed to receive $324 million (€312 million) annually for road infrastructure over a 20-year period.

However, these payments are only guaranteed if copper prices remain above $8,000 (€7,700) per tonne.

If prices fall below this threshold, "the state will receive less, or even nothing at all," warns the coalition.

Additionally, even if copper prices soar to $12,000 per tonne, the Congolese side will still receive the same $324 million, preventing the country from fully benefiting from market upswings.

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Skewed payment structure

A further criticism of the deal lies in its fixed payment structure, regardless of the volume of minerals extracted.

Baby Matabishi, coordinator at the Carter Center-DRC and a member of CNPAV, highlighted the issue in an interview with RFI’s Kinshasa correspondent Pascal Mulegwa.

"Everything depends on the price of copper. There is this volatility and uncertainty of price, which doesn't necessarily guarantee that the $324 million is secured," Matabishi explained to RFI.

The NGO also raises a key inconsistency: "How can it be understood that a company that produces 100,000 tonnes of copper pays $324 million – and on the day it produces 200,000 tonnes or 400,000 tonnes – and then pays the same amount?" Matabishi emphasised.

Hence, the lack of a production-based scaling mechanism means the DRC does not proportionally benefit from increased mining output.

CNPAV has also condemned ongoing tax exemptions granted to Chinese companies, which cost the DRC at least $100 million annually.

While the Kinshasa government argues that infrastructure development will offset any losses, civil society organisations claim that many promised projects remain incomplete or substandard.

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