Highlights: The DRC obtains an additional 5.8 billion in the “contract of the century” with Chinese companies. Chinese companies which had paid only $1.2 billion in 15 years will have to pay nearly $6 billion over the next 20 years. The expected billions, according to the government, will be invested in the construction of roads of national interest. The Democratic Republic of Congo produces more than 70% of the world's cobalt supply. The metal is essential component of batteries and is considered key to the transition to renewable energy.

The DRC authorities are rubbing their hands after obtaining a 5.8 billion USD surplus in negotiations with the group of Chinese companies signatories of the “deal of the century” which…

The DRC obtains an additional 5.8 billion in the “contract of the century” with Chinese companies

The DRC authorities are rubbing their hands after obtaining a 5.8 billion USD surplus in negotiations with the group of Chinese companies signatories of the “deal of the century” which provides access to copper and cobalt mines in exchange for infrastructure. Monday evening in Kinshasa, the inspector general of finance, the ministers of public works and the deputy head of the presidential cabinet who participated in these negotiations lasting several months revealed the broad outlines of the conclusions.

General view of part of the tens of thousands of tons of copper and cobalt stored in the Tenke Fungurume mine, in southeastern DRC, June 17, 2023. A dispute between Congolese authorities and the Chinese company CMOC who, owner of the mine, stopped exports for months. The Democratic Republic of Congo produces more than 70% of the world's cobalt supply. The metal is an essential component of batteries and is considered key to the transition to renewable energy. © AFP/Emmet Livingstone

By: RFI Follow

With our correspondent in Kinshasa

Pascal Mulegwa

The Chinese side sees some 100 million USD in exemption maintained, but Kinshasa estimates that this shortfall will be compensated by the volume of expected infrastructure. This year, the Chinese side must pay the DRC 624 million USD and from next year 324 million annually.

Chinese companies which had paid only $1.2 billion in 15 years will have to pay nearly $6 billion over the next 20 years.

The expected billions, according to the government, will be invested in the construction of roads of national interest in order to open up the provinces. The DRC should also benefit from 240 million USD in royalties on the annual turnover of Sicomines.

This joint venture in which Kinshasa holds 32% can no longer be managed solely by the Chinese side. This co-management should make it possible to better control production and sales before certifying the declared figures, says the Inspector General of Finance, Jules Alingete.

The Congolese party also obtained co-management of the Busanga power plant owned by Sicomines. Its shares have been quadrupled, but the Chinese keep 60%.

Also read: What future for the “contract of the century” between the DRC and China?

The DRC obtains an additional 5.8 billion in the “contract of the century” with Chinese companies

The DRC obtains an additional 5.8 billion in the “contract of the century” with Chinese companies

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