In blow to China, Congo wants to review mining contracts with the Middle Kingdom

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Congo’s President Felix Tshisekedi wants a review of mining contracts signed with China in 2008 –a move that could impact Beijing’s aspirations to lead the global Electric Vehicle (EV) industry.</p>
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The President wants to begin by taking a closer look at the "technical and financial details of Sino-Congolese contracts", according to an <a href="https://www.aljazeera.com/news/2021/9/11/dr-congo-leader-seeks-review-of-mining-deals-with-china"><em>Al Jazeera </em>report</a>.</p>
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The Democratic Republic of Congo (DRC) is the world's biggest producer of cobalt–an essential component in batteries used to power electric vehicles and appliances like smartphones, tablets and laptops.</p>
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Former President Joseph Kabila, who ruled from 2001-2019, had negotiated a controversial minerals-for-infrastructure contract with China for $9 billion. The deal was reduced under pressure from the International Monetary Fund (IMF) but DRC still paid $2.74 billion to China.</p>
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Kabila’s government had entered a deal with Sinohydro. Besides, China Railway agreed to build roads and hospitals in exchange for a 68% stake in the Sicomines venture.</p>
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A statement after the Friday cabinet meeting said that DRC is lacking in infrastructure and this hampers its development, hinting that the promised infrastructure has not materialised.</p>
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President Tshisekedi had earlier also said that he wants to review contracts signed with foreign mining companies. <em>Al Jazeera </em>quoted Tshisekedi as saying: “It is not normal that those with whom the country has signed exploitation contracts are getting richer while our people remain poor”.</p>
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In August Tshisekedi’s government had announced that it had formed a commission to reassess the reserves and resources at China Molybdenum's massive Tenke Fungurume copper and cobalt mine in order to "fairly lay claim to (its) rights", <em>Reuters </em>had reported.</p>
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Tshisekedi has said that lopsided contracts with mining companies have denied the Congolese people their fair share of benefits from the sale of their nation's minerals.</p>
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According to <em>Reuters</em>, some analysts saw the presidential review as the result of western pressure to target Chinese companies. China's ambassador to Congo warned that the country "must not be a battlefield between major powers".</p>