News (206)
The European Commission will provide €60 million in humanitarian aid to the Democratic Republic of Congo (DRC). According to the announcement, made on January 28, the funds will address the urgent needs of populations displaced by the fight between the Congolese army and Rwanda-backed M3 rebels, with a focus on the people of Goma and its surroundings. For now, the exact number of displaced is unknown.
Before the recent escalation of the conflict, about 800,000 internally displaced people were already living in overcrowded conditions around Goma. Despite receiving $17 million in emergency medical aid from the UN, the needs of those affected far exceed available resources.
The European aid will be used to build shelters, supply clean drinking water, distribute food, and support educational programs for children impacted by the conflict. This funding is part of a broader effort that has brought total EU assistance to the DRC to over €272 million since 2023.
Hadja Lahbib, European Commissioner for Crisis Management, reaffirmed the EU's commitment to protecting civilians. "In these particularly difficult times, the European Union remains committed to supporting the most vulnerable populations in the Democratic Republic of Congo. Despite ongoing challenges that hinder humanitarian access due to intense fighting, we will ensure that humanitarian funds are released without delay and that aid continues to reach those who need it most," she stated. Lahbib also urged respect for international humanitarian law, emphasizing the protection of displaced persons, humanitarian workers, and medical facilities.
The UN has reported that "M23 rebels and the Rwandan army are progressively taking possession of Goma," raising concerns over a potential human rights crisis in the city. UN High Commissioner for Human Rights Volker Türk warned that civilians face serious risks from explosive weapons such as mortars and heavy artillery in densely populated areas. He noted that shellfire had struck at least two sites housing displaced persons.
Additionally, Türk highlighted concerns over law and order in Goma following the escape of approximately 4,763 prisoners from Muzenze prison, the city's largest penitentiary.
Amidst the escalating conflict, the DRC has appointed Évariste Somo Kakule as military governor for North Kivu on January 28. Promoted to major-general, Kakule previously led the 31st Rapid Reaction Brigade based in Kindu, Maniema province. He replaces Major General Peter Cirimwami, who was killed during fighting in Saké on January 23.
This article was initially published in French by Olivier de Souza
Edited in English by Ola Schad Akinocho
The United States has demanded Rwanda’s withdrawal from the Democratic Republic of Congo (DRC) territory amidst recent conflicts. "We affirm our strong support for the Congolese people and the sovereignty and territorial integrity of the DRC and urge Rwanda to do the same," stated Ambassador Dorothy Shea, acting U.S. charge d'affaires at the United Nations, during a Security Council briefing on January 28, 2025.
On the same day, Marco Rubio, the new foreign minister in President Donald Trump's administration, called Rwanda’s President Paul Kagame, claiming he was confused over the escalating situation in eastern DRC. The region is under attack by M23 rebels, whom Rwanda supposedly backs.
Besides the US, during a meeting in Brussels, European Union foreign ministers called on Rwanda to withdraw its troops from Congolese territory and stop supporting the M23, as articulated by Kaja Kallas, head of EU diplomacy.
These diplomatic reactions come amid growing unrest in several towns across the DRC, where protests have sometimes turned violent. In Kinshasa, demonstrators have vandalized diplomatic missions and looted foreign-owned properties. Some citizens accuse targeted countries of complicity or inaction regarding the deteriorating security situation in eastern DRC.
While acknowledging the "cry of anger and exasperation" from the public, the Congolese government condemned violent protesting "in all forms" and expressed regret to those affected. However, Congolese Foreign Minister Thérèse Kayikwamba Wagner emphasized that mere rhetoric is insufficient. "Rwanda has proved that your declarations do not matter to it," she said during another UN Security Council meeting on January 28. Since an emergency session on January 26, DRC officials have been calling for sanctions against Rwanda.
On the conflict front, the UN reports that "M23 rebels and the Rwandan army are gradually taking possession of Goma." In response to this situation, the DRC appointed Évariste Somo Kakule as military governor for North Kivu on January 28. Promoted to major-general, Kakule previously led the 31st Rapid Reaction Brigade based in Kindu, Maniema province. He replaces Major General Peter Cirimwami, who was killed during fighting in Saké on January 23.
Georges Auréole Bamba
The security crisis escalated in Goma last week, causing severe power and water supply cuts in the area. Several power lines connecting the eastern Congolese town to supply stations have been damaged amidst the renewed conflict with M3 rebels.
On January 24, Virunga Energies reported that the lines supplying Goma and Nyiragongo territory were compromised during clashes along the Kimbumba-Goma axis. Just two days earlier, the country’s power utility, Société Nationale d'Electricité (SNEL), announced that its high-voltage line linking the Ruzizi power station to Bukavu—another source of electricity for Goma—was destroyed on January 22. Both companies indicated in their press releases that they would conduct technical repairs as soon as security conditions permitted.
DR Congo’s power regulator, ARE, recently set up a new committee to oversee electricity distribution in Goma. The committee aims to clarify the roles of various energy providers, including SNEL, SOCODEE, Virunga Energies, and NURU SASU. However, ongoing conflict is likely to hinder these regulatory efforts.
The impact on local economic activity has been significant. The water utility, REGIDESO, struggles to maintain normal supply levels due to its reliance on electricity for pumping stations. Key power consumers, such as the Goma airport and military camps in Mubambiro and Katindo, have been forced to seek alternative solutions.
Many businesses are now relying on generators, which has increased their operating costs. The fresh produce distribution sector has been particularly hard hit, as it depends heavily on a stable power supply, according to Congolese Press Agency (ACP) reports.
A resident contacted by phone noted some improvement: "Since Saturday evening (January 25), electricity has been restored in part of the town. Water has also partially returned." However, with ongoing fighting, the reliability of electricity and water supplies remains uncertain.
Olivier de Souza
The Democratic Republic of Congo (DRC) has exported 145,452 tonnes of cobalt in the first nine months of 2024, averaging 48,484 tonnes per quarter. The figures were disclosed by the Congolese Ministry of Mines. Annual exports could reach 193,936 tonnes, surpassing last 2023's record of 152,798 tonnes.
According to the data, CMOC, a Chinese firm, has dominated cobalt exports from the DRC over the period reviewed, thanks to its operations at the Kisanfu and Tenke Fungurume (TFM) mines. CMOC exported 50,021 tonnes from the two mines over the period. Glencore followed with around 32,000 tonnes exported from the MUMI and KCC mines. The Swiss firm became the world’s second-largest cobalt exporter in 2023; it was the first before that year.
The Ministry of Mines has not disclosed the revenues generated from these record sales, making it difficult to determine whether the increase in export volumes has compensated for declining cobalt prices. The cobalt market has been in surplus for the past three years, leading to a significant price drop. On the London Metal Exchange, cobalt prices fell from around $50,000 per tonne in January 2023 to approximately $24,000 per tonne in January 2025.
Cobalt: Price evolution since 2023
This surplus can be partly attributed to increased Congolese cobalt exports linked to CMOC's expanded production capacity over the past two years. CMOC's cobalt production surged more than fivefold since 2022, reaching 114,165 tonnes in 2024. According to the Cobalt Institute, the DRC is expected to account for 48% of global cobalt supply growth by 2030, compared to 37% for Indonesia.
This article was initially published in French by Emiliano Tossou (Ecofin Agency)
Edited in English by Ola Schad Akinocho
The issue of security has gotten worse in the eastern Democratic Republic of Congo (DRC). As a result, the Congolese government requested an emergency public session of the UN Security Council on January 24, according to a press release from the Foreign Ministry.
Due to the escalating crisis, President Félix-Antoine Tshisekedi cut short his participation at the World Economic Forum in Davos, Switzerland, returning to Kinshasa on January 23. After returning, he convened crisis meetings at the Cité de l'Union Africaine. The first meeting last Friday lasted three hours and included Prime Minister Judith Suminwa Tuluka and Deputy Prime Ministers Jacquemain Shabani Lukoo and Guy Kabombo Muadiamvita. The agenda focused on assessing the security and humanitarian situation in North Kivu, particularly around Goma.
After a recent Security Council meeting, Congolese army spokesman Major General Sylvain Ekenge announced the death of Major General Peter Cirimwami, the military governor of North Kivu province. Cirimwami "fell on the field of honor with his weapon in his hand," Ekenge stated. He had been at the front lines during an M23 offensive near Saké, just 20 kilometers west of Goma.
"The supreme commander has given firm instructions for the attackers to be hunted down to their last entrenchment, pushed away from Goma, and pursued until the full recovery of the occupied territory," Ekenge added. Implementing these directives will require exceptional security expenditures, highlighting the conflict's significant impact on budget execution.
The conflict in eastern DRC has been going on for over two decades. Under the 2025 budget law, it is identified as "one of the major risks weighing on public finances." Authorities warn that this conflict could jeopardize budget balance, limit public policy financing capabilities, and threaten economic stability.
Exceptional Security Spending
In 2023, exceptional security spending reached $1.4 billion—approximately 2.2% of GDP and 11.5% of the overall state budget, according to an International Monetary Fund (IMF) report. Since declaring a state of siege in May 2021 in Ituri and North Kivu provinces, execution rates for security-related expenditures have exceeded 100%. The rates surged from 50% and 254.7% in 2020 to 336% and 411.2% in 2021, reaching 508% and an astonishing 2001.9% in 2022. This situation has constrained other expenditures, particularly capital investments.
Furthermore, the conflict disrupts economic activity and hampers tax revenue mobilization. For instance, revenues collected from Rutshuru territory—a region frequently occupied by M23 rebels—plummeted from 85.8 million Congolese francs (CF) in 2020 to just CF11 million in 2023. The authorities noted that “access to tax branches in Ituri, Djugu, and Mambasa has been severely limited due to ongoing attacks by armed groups and militias, resulting in a shortfall of nearly CF10.3 million in 2023”.
Pierre Mukoko
Eiffage, the French construction group, has landed a €100 million deal to renovate and expand the Matadi container terminal in the Democratic Republic of Congo (DRC). The firm announced the news on January 20.
The contract was awarded to Eiffage's subsidiary, Eiffage Génie Civil Marine, by Matadi Corridor Terminaux à Conteneurs (MCTC), which obtained a concession in November 2024 to modernize, equip, and operate part of the terminal.
Under the project, Eiffage will build a new pile dock–350 m long and 30 m wide–in front of docks 5, 6, and 7. Additionally, three access walkways, each 20 meters wide, will cross the existing docks. The project also includes building an operations unit, a workshop, and rehabilitating a 7-hectare logistics platform. Works are to be completed within 27 months.
This initiative is part of phase two of the expansion program for Matadi's container terminal, which was launched in 2019. The investment plan aims to double the terminal's overall capacity from 200,000 to 400,000 TEUs (twenty-foot equivalent units).
However, some experts caution that the impact of this expansion may be limited without accompanying dredging and buoying projects on the Congo River between Matadi and the Atlantic Ocean. Such projects are essential for allowing larger ships to access the port. Located on the left bank of the Congo River, the Matadi port cannot accommodate large ships, due to insufficient draught. Consequently, the DRC has to rely on neighboring ports as staging areas for its imports and exports.
This article was initially published in French by Henoc Dossa, Ecofin Agency
Edited in English by Ola Schad Akinocho
The European Union (EU) and the Team Europe initiative have committed €1 billion to help establish the Kivu-Kinshasa Green Corridor in the Democratic Republic of Congo (DRC). Jozef Sikali, European Commissioner for Partnerships, announced the commitment at the World Economic Forum in Davos, Switzerland. Sikali spoke after a presentation by Congolese President Félix Tshisekedi.
"The European Union and its member states united under the Team Europe initiative, are committed to pooling their resources, projects, and investments to the tune of one billion euros along this corridor. I am pleased to announce that we have decided to mobilize an additional 42 million euros in grants, with the ambition of doubling this amount very quickly," Sikali stated.
Established by a decree signed on January 15, 2025, the Kivu-Kinshasa Green Corridor spans 544,270 square kilometers from east to west across the DRC. The protected area thus covers about 25% of the country's territory. The project aims to promote a green economy while preserving more than 100,000 square kilometers of primary forests, reinforcing the DRC's role in combating global warming.
500,000 jobs expected
According to President Tshisekedi, the initiative draws on lessons from the Virunga National Park project, combining forest conservation with environmental protection, sustainable job creation, food security, and conflict prevention.
"This corridor is not only a large-scale project but also a genuine opportunity for integrated transformation. It will generate more than 500,000 jobs, a significant portion of which will be dedicated to reintegrating demobilized youth from armed groups," Tshisekedi emphasized. A statement from the Congolese presidency indicates that the project should gulp a billion dollars in investment over the next three to four years.
The DRC is rich in strategic mining resources essential for the global economic and energy transition, which the World Bank values at around $24 trillion. Mining is the DRC’s main source of export and public financing revenues. In recent years, Congolese authorities have intensified efforts to maximize profits from their mineral resources. Among others, they renegotiated some contracts, increased the State’s stakes in assets, and ramped up control on exports and spending by international partners.
However, progress in improving living standards for the population has been slow. The gross national income per capita stands at just $1,560 in purchasing power parity, with many still living near or below the poverty line. This situation forces reliance on unsustainable cooking solutions like charcoal, which constitutes 67% of energy expenditure in the country and fuels a market valued at $4 billion annually, in an energy sector globally estimated at over $6 billion.
A significant supporter
The Kivu-Kinshasa Green Corridor aims to address these challenges by generating additional income for communities through mobility solutions that utilize renewable energies such as hydrogen and biofuels. The project also presents opportunities for private-sector investment aligned with these goals. The decree establishing the protected area includes tax incentives for conservation and development projects.
John Kerry, former U.S. Secretary of State and current Special Envoy for Climate Change, supports the initiative. "As a representative of the private sector, I pledge to continue working with my colleagues to make these projects a success. There's nothing worse than announcing a promising initiative without making it a reality. That won't be the case here. This project will happen," Kerry stated. The former American official is now Vice President of Galvanize Climate Solutions, an organization that mobilizes capital on a global scale to finance sustainable investments.
This article was initially published in French by Georges Auréole Bamba
Edited in English by Ola Schad Akinocho
Rawbank announced on January 21, 2025, that it will integrate the Mastercard Carbon Calculator into its online platform. The lender thus becomes the first to partner with Mastercard in the Democratic Republic of Congo (DRC). The new tool will help Rawbank’s customers better understand and reduce their carbon footprint, promoting eco-friendly financial practices.
"We are building a banking model that goes beyond financial services by initiating concrete actions for the future of our environment and our communities," said Mustafa Rawji, General Manager of Rawbank. "The Carbon Calculator offers our customers the opportunity to actively contribute to an ecological approach, aligning their financial habits with environmental preservation. This initiative illustrates our commitment to generating a positive and sustainable impact in the DRC."
Mohamed Benomar, Mastercard's Country Manager for Northwest Africa, emphasized that this partnership is a major milestone towards sustainability. "Thanks to the Carbon Calculator, we offer users in the DRC valuable information on the environmental impact of their purchases, encouraging them to adopt more responsible consumption habits. Together, we enable them to make informed financial choices that contribute to a more sustainable world," Benomar said.
Launched amid growing environmental awareness in the financial sector, this initiative seeks to transform the banking experience while laying the groundwork for a greener future in the DRC. The United Nations Environment Programme highlights that 60% of the Congo Basin rainforest is in the DRC, underscoring the country's vital role in mitigating global carbon emissions.
The partnership with Mastercard is part of Rawbank's broader commitment to climate action and forest protection. Last year, the bank sealed a $2 million deal to boost access to clean cooking solutions in a country where the charcoal trade is valued at nearly $4 billion. Rawbank also supported the development of carbon markets that indirectly finance sustainable development and directly contributed to pro-biodiversity tree-planting projects.
The announcement coincides with the World Economic Forum in Davos, Switzerland, where President Tshisekedi is set to present his climate plan.
This article was initially published in French by Georges Auréole Bamba
Edited in English by Ola Schad Akinocho
Congolese President, Félix Tshisekedi, is in Davos for the World Economic Forum (WEF). He arrived in Switzerland on January 20 with his ministers of foreign affairs, environment, finance, and mines.
The Congolese Presidency said Tshisekedi should announce a major project at the forum. The source added that the project aimed to fight climate change and preserve biodiversity in his country.
Tomorrow, the Congolese leader will participate in a panel discussion focused on protecting the Congo forest basin, recognized as the world's largest lung. He will be with John Kerry, former U.S. Secretary of State and current Special Envoy for Climate Change under President Biden. Kerry, who co-chairs Galvanize Climate Solutions a global firm dedicated to advancing climate solutions will provide an international perspective on financing options.
Another notable speaker at the event will be Jozef Sikela, European Commissioner for International Partnerships. The European Union, the United States, Japan, and Saudi Arabia reached a preliminary agreement to secure supplies of minerals critical to the energy transition. The DRC's vast mineral resources, estimated at nearly $24 billion, are central to these discussions. The DRC’s top partner in copper and coltan production, China, is not taking part in the talks.
The DRC’s abundant mineral reserves are critical for energy transition. However, much of the resources are in forest areas. These regions are still threatened despite environmental commitments from mining companies.
Decades of socio-political instability make it hard for the DRC to attract international financing. Labeled as a high-risk debtor, the country recently secured a limited $1 billion commitment from the International Monetary Fund (IMF), accompanied by relatively challenging conditions. President Tshisekedi's proposals at Davos will be crucial for advancing his nation’s interests and securing necessary support during the summit.
This article was initially published in French by Georges Auréole Bamba
Edited in English by Ola Schad Akinocho
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
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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