MINING (40)
On January 15, 2025, the International Monetary Fund (IMF) Executive Board approved a new program with the Democratic Republic of Congo (DRC), following a service-level agreement reached in November.
The 38-month program has two main components: the Extended Credit Facility (ECF) worth $1.729 billion and the Resilience and Sustainability Facility (RSF) with $1.038 billion. Although these amounts are slightly lower than initially announced, the program’s goals have not changed: enhancing the country's macroeconomic stability, improving governance, and increasing resilience to climate challenges.
The ECF is designed to stabilize the economy, improve governance, and promote inclusive growth. Meanwhile, the RSF will support the DRC’s climate adaptation efforts, helping the country reduce its greenhouse gas emissions by 21% by 2030.
In 2024, the DRC achieved solid economic performance, with GDP growth projected at 6%, a significant drop in inflation, and reduced budget deficits, despite exceptional expenditures related to security and the fight against the Mpox epidemic.
The Central African nation also faced major climate-related disasters, including devastating floods that affected over 300,000 households, destroyed buildings, and killed 300 people. The crisis has exacerbated health risks and affected agricultural production. It called for urgent humanitarian responses and more funds to boost climate resilience.
According to IMF Deputy Managing Director, Kenji Okamura, while the DRC has shown resilience in the face of crises, sustained efforts are crucial to consolidate economic and social gains, combat corruption, and address climate challenges.
The previous IMF program concluded in 2021 helped strengthen foreign exchange reserves and boost growth, but structural and climatic challenges persist.
Under the ECF, the IMF champions reforms to help the DRC increase tax revenue, improve public financial management, and depend less on mining revenues. As for the RSF, it focuses on achieving climate objectives, such as forest preservation and sustainable natural resource management.
Despite risks from ongoing conflicts and health crises, the IMF’s outlook for 2025 remains positive, with growth forecast at 5.1% and inflation projected at 7%.
This article was initially published in French by Charlène N’dimon
Edited in English by Ola Schad Akinocho
The Democratic Republic of Congo (DRC) has exported 2.35 million tonnes of copper in the first nine months of 2024. The figure, featured in a report issued on 30 December 2024 by the Ministry of Mines, is up 17% year-on-year. Based on this performance, the report’s authors estimated that the country’s exports for 2024 could stand at 3 million tonnes, thus setting a new record–at the national and continental levels.
According to the Ecofin Agency, a pan-African economic media, since June 2023, the DRC has exported over 750,000 tonnes of copper, on average, quarterly. The Central African country exported more than 800,000 tonnes in Q3 2024, Ecofin reports.
While the Ministry of Mines only releases sales figures without specifying whether exports include volumes from previous years, data from the Central Bank of Congo indicates little difference between production and sales.
Still, the DRC will remain the world's second-largest copper producer in 2024, ahead of Peru which produced 2.47 million tonnes between January and November, down 1.1% year-on-year. Chile kept its crown, with over 5 million tonnes produced last year.
The increased copper output substantially impacts the local economy, as the mineral accounts for more than two-thirds of Congolese exports and a significant portion of mining revenues, estimated at $5 billion for the 2025 budget.
This article was initially published in French by Emiliano Tossou (Ecofin Agency)
Edited in English by Ola Schad Akinocho
China's dominant presence in the Democratic Republic of Congo’s mining industry poses a “risk” to the African economy. Marcellin Paluku, Deputy Cabinet Director at the Ministry of Mines, made the claim yesterday, January 14, in an interview with Reuters.
“Today, 80% of our mines are with a single partner (China). So it's a risk [...] You never know what might happen. That's why we're now trying to diversify our partnerships, to avoid depending on a single partner,” Paluku declared, on the sidelines of a mining conference in Riyadh.
Further commenting on the DRC’s partnership diversification efforts, Paluku said the Congolese government was eager to negotiate with potential new investors, such as Saudi Arabia, India, and the European Union. However, he did not indicate at what stage these talks were. Regardless, his words match those of Kizito Pakabomba, the DRC’s Mining Minister. In October 2024, Pakabomba said the country sought to “attract better investors, more investors, and diversified investors.” At the time, he had mentioned the United Arab Emirates as a potential partner.
China's influence in the DRC's mining sector is evident in its ownership of major cobalt mines, such as those held by China Molybdenum Company (CMOC), and its significant stake in the Kamoa-Kakula copper mine through Zijin Mining.
The DRC is the world's leading producer of cobalt and the second-largest producer of copper, making it a focal point for international competition due to the strategic importance of these minerals in the energy transition and advanced technologies. The country's mineral wealth extends beyond copper and cobalt. The Congolese soil hosts other key minerals like zinc, 3T ores, diamonds, gold, uranium, and germanium.
This article was initially published in French by Aurel Sèdjro Houenou (Ecofin Agency)
Edited in French by Ola Schad Akinocho
Ivanhoe Mines is considering importing hydropower from Angola to ensure optimal operations at the Kamoa-Kakula copper complex in the Democratic Republic of Congo (DRC). The Canadian company operates the complex and is one of its shareholders (39.6%), alongside Zijin Mining Group (39.6%), Crystal River (0.8%), and the Congolese state (20%).
Ivanhoe claims it could start importing the electricity by 2030, via a 2,000 MW high-voltage transmission line. The facility, yet to be built, would transport power from northern Angola to the Copperbelt in the DRC and Zambia.
The project is being developed by Trafigura and ProMarks, which signed a Memorandum of Understanding with the Angolan government in July 2024 to study the project's technical and economic viability. The developers plan to form a joint venture to develop, finance, build, and run the line.
"The project should be financed through a combination of equity and debt. Planning, approvals and construction would take approximately four years after the final investment decision," Ivanhoe Mines indicated.
According to the Canadian operator, the Kamoa-Kakula complex requires about 240 MW to operate at full capacity (phase I, II, III, and the smelter). However, it currently uses 90 MW of domestic and imported hydroelectricity and has 160 MW of backup capacity from diesel generators. Due to insufficient electricity, the company is considering postponing the launch of the complex’s new copper smelter by three months. The smelter was initially set to start operations in March 2025.
Ivanhoe Mines has been seeking to tackle the issue by increasing its supply capacity, focusing on green electricity, which is cheaper and less polluting. It is also looking for internal and external solutions.
For example, the company counts on the fifth turbine of the 178 MW Inga II hydropower station, which should be commissioned in the second quarter of this year. According to Ivanhoe, “Kamoa-Kakula should initially be allocated an additional 70 MW of hydroelectricity from the grid over this period, with a gradual increase to 178 MW as grid improvement initiatives are completed.”
In the medium term, Ivanhoe Mines plans to boost electricity imports from Angola, which has significant unused hydroelectric power capacity. The African Development Bank (AfDB) notes that Angola currently has 1.5 GW of clean, unused hydroelectric power, expected to reach 3.5 GW by 2027. Besides, Sun Africa is building a 700 MW solar farm in Angola, using funds provided by the Export-Import Bank of the United States (EximBank).
The US plans to partner with Angola's National Electricity Transmission Company to develop cross-border and local transmission lines, further integrating Angola into regional power pools. The lines should also supply power to the Lobito corridor
This article was initially published in French by Aboudi Ottou
Edited in English by Ola Schad Akinocho
Kamoa Copper, the firm running the Kamoa-Kakula copper mine in the Democratic Republic of Congo (DRC), just pre-sold 80% of copper anodes from its new smelter set to launch this year. The pre-sale deals were inked with CITIC Metal Limited and Gold Mountains International Mining Company Limited. They have paid $500 million in advance, which the seller has already cashed in.
Both buyers are linked to Kamoa Copper’s shareholder Zijin Mining. In 2021, CITIC Metal and Gold Mountains entered a deal with Kamoa Copper to buy the copper from its first on-site concentrator.
According to Ivanhoe Mines, co-owner of the project, the deal, which spans three years, was concluded on “competitive and independent commercial terms”. At full capacity, Kamoa Copper’s new smelter should deliver up to 500,000 tonnes of 99.7% pure copper anodes annually.
Kamoa Copper said it is in advanced negotiations to sign a third pre-sale deal for the remaining 20% of the smelter’s output, with similar terms.
Congolese State Wants In
The Congolese government recently unveiled ambitions to be more involved in the selling of the country’s mining output. It holds 20% of Kamoa Copper.
Last December, Minister of Foreign Trade Jean-Lucien Bussa announced that the State would participate in selecting buyers. At the time, Bussa explained that Congolese authorities suspected that Kamoa Copper’s prices did not match “the market’s competitive rates”. The move aims to boost revenues from Congolese copper mining and ensure a fair valuation of the country's natural resources.
The government's desire to manage sales more effectively is part of a broader effort to maximize economic benefits from the mining sector, which is crucial for the DRC's revenue. The Kamoa-Kakula project is one of the world's largest copper deposits and is central to this strategy. If this new sales control policy is implemented, it could alter the commercial relationship between Kamoa Copper and its main buyers. However, it remains to be seen how this will align with existing commitments between the company and its partners.
“From now on, the State will participate in the buyer selection process. This will ensure optimal sales and selling at market prices,” Minister Bussa had said during a conference.
High Stakes
The government's ambition to manage sales more effectively is part of a broader effort to earn more mining revenues. The Kamoa-Kakula complex will significantly contribute to the government’s ambition, being one of the world’s largest copper deposits, added that copper is one of the country’s top sources of income. If implemented, the new sales control policy could alter the commercial relationship between Kamoa Copper and its main buyers. However, it remains to be seen how this will align with existing commitments between the company and its partners.
In the meantime, Kamoa Copper keeps seeking to become one of the world's largest copper producers. Earlier this month, project partners announced a copper production target of 520,000 to 580,000 tonnes for 2025, up from 437,061 in 2024.
This article was initially published in French by Louis-Nino Kansoun
Edited in English by Ola Schad Akinocho
Ten (10) Chinese nationals are detained in the Democratic Republic of Congo (DRC) for being involved in illegal mining operations in South Kivu. According to the Congolese Ministry of Justice which disclosed the news on January 10, the arrest is part of broader efforts by several African countries to combat illegal mining. Last month, 17 Chinese nationals had been arrested for the same reasons, in the same region.
#RDC_MINES | 🚨⚖️ COMMUNIQUÉ DU MINISTÈRE DE LA JUSTICE @JusticeGouvCD.
— Ministère des Mines - RDC (@MinMinesRDC) January 11, 2025
Ce communiqué fait suite à l'appréhension d'étrangers impliqués dans l'exploitation illicite de minerais au Sud-Kivu.@kizpaka @shabani_lukoo @VPM_MINTERSECAC @ConstantMutamba #CellComMINES pic.twitter.com/TB9EiO0G7C
Regarding the recent arrest, the Minister of Justice has instructed the Prosecutor General of the South Kivu Court of Appeal to initiate proceedings against those arrested and their accomplices.
A major issue, illegal mining in the DRC costs the country billions annually. Institutional weaknesses, internal complicity, and inadequate oversight exacerbate the issue. Chinese companies are often accused of failing to comply with the Congolese mining code, including operating without valid permits, neglecting environmental impact studies, and refusing to engage with local communities.
Despite these arrests, illegal activities by foreign mining companies, particularly Chinese ones, persist. In August 2021, six Chinese companies were forbidden from operating in South Kivu. They were accused of illegal mining and environmental damage. Unfortunately, it is hard to implement the decisions due to complicity within political and military elites. These alliances undermine governance efforts and hinder the effective implementation of administrative, social, and environmental certification processes advocated by the government. Additionally, the militarization of mining sites often benefits these companies, leading to violence against civilians.
This article was initially published in French by Olivier de Souza
Edited in English by Ola Schad Akinocho
A recent UN report has revealed that the M23 rebels in the Democratic Republic of Congo (DRC) are believed to have illicitly exported at least 150 tonnes of coltan to Rwanda in 2024. This development has been described as “the largest-ever contamination of the Great Lakes region's mineral supply chain”.
The report, relayed by international media outlets such as Reuters, details how the M23's control over transport routes leading to Rwanda facilitated this trafficking. According to the UN, after seizing control of Rubaya, a coltan-rich region in North Kivu, M23 “imposed” taxes on coltan mining sites, reportedly earning around $800,000 monthly from exporting their output to Rwanda.
This is not the first instance of Rwanda being accused of receiving coltan illegally exported from the region. In April 2024, pan-African economic media Ecofin Agency reported that Rwanda was “the preferred route for illicit coltan trade in the area”. Ecofin’s source was an ENACT report “Mining and illicit trading of coltan in the Democratic Republic of Congo”. The factors favoring this include a lack of export taxes on coltan and the ability to reclassify imported goods as "made in Rwanda" if they undergo processing with at least 30% added value. It is suggested that “much of the ore exported from Rwanda is of Congolese origin”.
Additionally, a 2022 Global Witness report found that 90% of the 3T ores exported by Rwanda were smuggled from the DRC. More recently, the issue gained attention when the DRC accused Apple of sourcing smuggled coltan, allegations that Apple denied while suspending its coltan supplies in Rwanda and the DRC. The new UN study's findings further fuel the controversy surrounding Rwanda's coltan exports.
In 2023, Rwanda was the world's largest exporter of this mineral, crucial for manufacturing computers and smartphones, with production estimated at 2,070 tonnes, compared to the DRC's 1,918 tonnes. The DRC is believed to hold between 60 and 80% of the world's coltan reserves.
According to Congolese authorities, the country loses approximately $1 billion annually due to illegal trafficking in 3T ores and gold. Besides Rwanda, neighboring countries like Uganda and Burundi are also identified as key destinations for these illicit minerals.
Aurel Sèdjro Houenou, Ecofin Agency
On January 10, Ivanhoe Mines announced a bond issue to raise $600 million. Part of the proceeds will support the firm’s operations in the Democratic Republic of Congo (DRC). This year, Ivanhoe plans to invest up to $1.7 billion in the Central African nation, on its Kamoa-Kakula copper complex and Kipushi zinc mine.
https://x.com/IvanhoeMines_/status/1877754011807355133
In detail, Ivanhoe intends to invest between $1.42 billion and $1.67 billion at Kamoa-Kakula. Most of these funds will serve to expand the mine. Last year, from January to September, Ivanhoe spent $1.61 billion on the project.
Kamoa-Kakula is projected to produce over 600,000 tonnes of copper concentrate by 2026, an increase from a peak of 580,000 tonnes expected in 2024. Last year, the complex delivered 437,061 tonnes of copper.
In contrast, Ivanhoe plans to spend far less on its Kipushi this year, mainly because it spent $185 million in H1 2024 to help revive the project. And now that Kipushi started producing, its operator plans to allocate only $25 million to boost processing capacity by 20% by Q3 2025, and $40 million for ongoing operational maintenance.
While these investments cover Ivanhoe’s DRC operations, the firm has not disclosed how much local suppliers should expect to capture directly. Recently, Congolese authorities have intensified efforts to ensure that local subcontractors and suppliers gain more from investments made by foreign mining companies.
Emiliano Tossou, Ecofin Agency
Rawbank, the largest bank in the Democratic Republic of Congo (DRC) by assets and business volume, has helped a local mining company in Katanga province secure up to $10 million in funding. The identity of the mining company remains undisclosed.
“This transaction reinforces our leadership in the DRC’s banking sector and underscores our commitment to supporting the country’s economic development,” said Rawbank Managing Director, Mustafa Rawji.
This is not the first time Rawbank has supported the mining sector. In 2022, the lender led a $200 million syndicated financing package for Kamoa-Kakula, the operator of one of Africa's largest copper deposits. However, this time, Rawbank has introduced new perspectives regarding business financing.
The recent operation features commercial papers—a type of debt security typically reserved for highly credible companies with a strong ability to repay. To further reassure participating investors, Rawbank provided a corporate guarantee. This means that if the borrower struggles to settle its debt, an affiliated company will repay in its stead in due time.
“This second commercial paper issue demonstrates Rawbank's ability to innovate and meet the specific needs of its institutional clients. The bank's trading room, which adheres to international standards, allowed for optimal structuring of the operation, offering investors superior yield opportunities in a competitive market,” said Rawbank Commercial Director, Etienne Mabunda.
Rawbank places significant emphasis on the mining sector, which accounts for 70% of the DRC's exports. “By providing a national operator with competitive financing, this new issue contributes directly to boosting regional economic activity and investor confidence while stimulating local savings through attractive financial products,” the bank said in a press statement.
GAB
In the ongoing battle to take control of the Manono lithium project, Australian mining company AVZ has secured the support of China's Suzhou CATH Energy Technologies (CATH). On January 8, 2025, AVZ announced that it had obtained a $20 million facility from CATH to finance its working capital requirements and operations over the next 12 months, including efforts related to the project dispute with the Democratic Republic of Congo (DRC) government.
The new agreement has allowed AVZ to waive the $15 million it previously secured from Locke Capital, a litigation financing specialist. AVZ has used the money to support its legal actions surrounding the Manono project.
The new facility is part of a revised partnership between AVZ and CATH, established in 2021 for developing Manono. By maintaining its partnership with AVZ, CATH aims to secure a portion of Manono's lithium production. The revised agreement allows CATH to purchase up to 100% of uncommitted production volumes until a five-year period expires or any funds advanced for project development costs are repaid. Afterward, CATH's purchase rights will be reduced to its economic interest in the joint venture. Additionally, subject to obtaining mining rights for Manono, CATH can acquire a 30.5% indirect interest in the project by paying AVZ $259.25 million.
This new deal bolsters the AVZ-CATH partnership. In parallel, Zijin Mining plans to bring the lithium deposit into production by 2026, according to Bloomberg which relayed a 7 November 2024 mail from Zijin. The Chinese firm plans this despite complaints surrounding the mining permit granted by the DRC.
In its January 8 release, AVZ did not specify when it hopes to regain control of the Manono project or comment on Zijin's production plans. Over the past few years, the Australian firm has initiated various legal proceedings to contest its eviction from the project, but the outcome remains uncertain.
Nevertheless, AVZ and Zijin’s interest in Manono highlights the project’s potential to make the DRC one of Africa’s top lithium producers. According to previous estimates by AVZ, the Manono deposit contains at least 400 million tonnes of mineral resources grading 1.65% lithium.
This article was initially published in French by Emiliano Tossou
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Ivanhoe Mines produced 437,061 tonnes of copper concentrate at its Kamoa-Kakula project in 2024, up 12% year-on-year. The Canadian firm disclosed the figure on January 8, 2025, saying it aligns with its revised forecast range of 425,000-450,000 tonnes. This year, Ivanhoe Mines aims to produce 520,000 to 580,000 tonnes of copper concentrate.
Last June, it commissioned a third concentrator at Kamoa-Kakula, boosting the project’s installed capacity to 600,000 tonnes per year. This new concentrator should support Ivanhoe Mines’ ambitions. It expects to surpass 600,000 tonnes of copper concentrate production by 2026.
The Democratic Republic of Congo (DRC) became the world’s second-largest copper producer in 2023, surpassing Peru. While Kamoa-Kakula played a major role in this shift, the Congolese government is concerned about the sales process for copper produced at the complex. The authorities recently argued that the negotiated prices do not reflect “competitive market rates”. During a council of ministers held last October, the government suggested state involvement in selecting buyers for Kamoa's production.
Kamoa-Kakula is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River (0.8%), and the Congolese state (20%).
This article was initially published in French by Emiliano Tossou
Edited in English by Ola Schad Akinocho
The global demand for batteries stood at 850 GWh in 2023, up more than 40% year-on-year. The surge was mainly driven by electric vehicle (EV) sales, which account for nearly 90% of total demand. According to the International Energy Agency’s (IEA) EV Battery Supply Chain Sustainability report, demand should keep growing, quadrupling by 2030, and sevenfold by 2035 under a business-as-usual scenario.
However, global battery demand could rise ninefold if countries fulfill their climate commitments by 2035. This demand could increase twelvefold if the energy sector achieves carbon neutrality by 2050, as outlined in the IEA's Net Zero Emissions (NZE) scenario.
Hope
These optimistic forecasts for the battery market bode well for critical raw materials such as lithium, cobalt, and graphite minerals essential for battery production that are abundantly found on the African continent. However, these markets are currently experiencing significant turbulence, marked by a sharp decline in prices.
For instance, cobalt prices have halved over the past two years due to oversupply. The Cobalt Institute anticipates a market surplus in 2025, which may keep prices at current levels. As of January 3, 2025, cobalt traded at $24,300 per tonne on the London Metal Exchange.
The lithium market is also facing challenges; lithium hydroxide prices have plummeted nearly 90% since late 2022. Fastmarkets reports that lithium spodumene prices fell over 84% between March 2023 and March 2024. Kent Masters, CEO of Albemarle the world's leading lithium producer predicts that "prices will stay low for longer."
The graphite market recorded the same trend, with Fastmarkets indicating a 33.43% drop in prices in 2023, from $530-$575 per tonne in December that year to $450 per tonne in October 2024 close to the all-time low of $430 per tonne set in 2020.
The current decline in critical mineral prices poses significant challenges for African economies. Countries like the Democratic Republic of Congo (DRC), which produces 70% of the world's cobalt; Zimbabwe and Mali, key players in lithium; and Mozambique and Madagascar, important sources of graphite, are relying on these resources to drive economic growth. However, there are rising concerns about the viability of these countries’s strategies and potential delays in developing new production sites.
Challenges
During the previous electric vehicle boom that led to soaring prices for critical metals, many African nations were outpaced by competitors particularly Chinese firms that flooded markets with their production. To capitalize on the anticipated global energy transition by 2030 or 2035, these countries must adopt a different approach by addressing several key challenges: improving regulatory frameworks, strengthening infrastructure, optimizing business climates, and developing skills within the workforce.
According to a report from the Future Minerals Forum, a $5.4 trillion investment will be needed by 2035 to support the global energy transition in the critical minerals sector. Africa is strategically positioned to play a vital role here. The report describes the continent as a "credible alternative to China's dominance in refining and processing critical minerals," thanks to its abundant resources and proximity to European and Asian markets.
Louis-Nino Kansoun, Ecofin Agency
Between January and September 2024, Kibali Gold exported 19.55 t of gold from the Democratic Republic of Congo (DRC). This output was valued at $1.02 billion, according to the DRC’s Technical Cell for Mining Coordination and Planning (CTCPM). Bankable found that such a record hadn’t been achieved since 2020, value-wise. Volume-wise, the company exported less gold in 2024, compared to 2023, over the period reviewed. Meanwhile, the Kibali mine produced 4.91 t of gold.
In the first nine months of 2024, gold sold for $1,630.65 per ounce on average, against $1,315.31 in 2023, over the same period, thus 24% up year-on-year. Kibali Gold’s top stakeholders–Barrick Gold and AngloGold Ashanti–tried to take advantage of the surge in gold prices.
While Kibali Gold's performance is commendable, it highlights a persistent imbalance in gold exports from the DRC. A comparison between the price per ounce exported by Kibali and the average annual price set by the London Bullion Market Association (LBMA) reveals a systematic discrepancy, with this gap reaching its highest level since 2021 in the first nine months of 2024. Additionally, artisanally produced gold, now centralized and marketed by DRC Gold Trading (formerly Primera Gold), is estimated at $2,100 per ounce.
Écart entre les prix de Kibali Gold et ceux du marché
Due to the lack of transparency surrounding Kibali's gold marketing processes, it is difficult to determine the reasons behind these price discrepancies. Financial reports often lack detailed information that would help clarify these differences. However, several hypotheses can be considered.
One possibility relates to sales methods. Unlike other players who sell raw gold directly to buyers, Kibali Gold may utilize forward sales agreements or specific marketing structures that could affect the final price.
Another possibility relates to costs associated with transporting gold to international markets. The Kibali mine is located approximately 220 kilometers east of Isiro, Haut-Uele's provincial capital, which lacks a modern airport and reliable road infrastructure. Transportation options are limited to the Ugandan border town of Arua, about 150 kilometers to the west, or the Kenyan port of Mombasa, which is 1,800 kilometers away.
These logistical challenges likely incur additional costs for transporting and securing gold, ultimately reducing net selling prices. According to Kibali executives, marketing costs for 2024 are anticipated to range between $740 and $820 per ounce an expense that could partially explain this year's observed price variance.
In a press release issued in November 2024, Kibali Gold executives emphasized their company's economic contributions to the DRC. They reported generating $5.4 billion since operations began, including $1.66 billion in taxes and royalties and $2.87 billion in contractual services. Kibali Gold is the DRC’s largest industrial gold producer.
Assuming an average lifespan of 11 years for the firm’s 10 permits listed in the Mining Cadastre database, Kibali Gold’s contribution stands at an estimated value of $509 million per year compared to an average annual export value of $911.18 million, with 90% benefiting major shareholders Barrick Gold and AngloGold Ashanti.
Georges Auréole Bamba
The electricity regulator (ARE) has granted Compagnie Minière Luisha (COMILU) eligible customer status. This allows the firm to have other power suppliers, besides the country’s power utility, the SNEL, for three years. The visa was officially granted on December 23, 2024, by Sandrine Mubenga Ngalula, General Manager of ARE. COMILU is 78% owned by China Railways Group Limited.
The eligible customer status is governed by the Electricity Act and a ministerial order issued by the Minister of Water and Electricity. It can be granted to any consumer that meets one of two criteria: having an installed capacity of over one megawatt or an annual consumption exceeding 5 gigawatt-hours for non-residential electricity use.
For now, it is unknown if COMILU will leverage its new status to import electricity or buy power from China Railway’s subsidiaries.
China Railway Group has been operating in the DRC since 2008 and is also involved in the Sicomines joint venture, a strategic partnership with the DRC. The company's subsidiaries, particularly COMILU, focus on producing copper cathodes; this requires substantial and consistent energy. However, the SNEL often struggles to meet these energy demands. As a result, mining operators often have to produce or import the needed input.
At a recent Makutano business forum that gathered experts from the DRC and beyond, the SNEL's director noted that mining companies spend nearly a billion dollars annually to compensate for the State’s energy deficits.
The sum represents a significant loss of opportunity for local electricity production in the DRC and is expected to continue rising. In 2024, 11 other companies, including major players such as Kamoa Copper (operated by Ivanhoe Mines), also received eligible customer status. This development allows these companies to diversify their electricity suppliers further, potentially reducing demand for locally generated electricity.
Georges Auréole Bamba