DRC wants bigger slice from proceeds generated by China’s mining companies

The Democratic Republic of Congo (DRC) is pushing for an audit of the country’s mining contracts with China, which it says heavily favor Beijing, arguing that the Central African country wants a bigger slice of the proceeds from the mining and export of its resources by Chinese companies.

DRC’s national assembly speaker Christophe Mboso has sought a proper audit of mining contracts with a strict review of the government’s deals with “certain partners such as the Chinese contract.” Finance minister Nicholas Kazadi has alleged that these contracts were skewed in favor of Beijing and wants the tax obligations on these companies increased.

“Sicomines, it seems, is not keen on paying the $200 million that the DRC is asking for after making huge profits,” Kazadi has reportedly said. In February 2023, the impoverished but mineral-rich nation called for an overhaul of a $6.2 billion mining deal with China. This followed president Felix Tshisekedi’s demand for a bigger share of the country’s vast mineral resources than that agreed upon by his predecessor.

“It is not normal that those with whom our country has signed exploitation contracts are getting richer while our people remain poor,” president Tshisekedi said in May 2021. “It is time for the country to readjust its contracts with the miners in order to seal win-win partnerships.” Sicomines, which owns most of the 15 mines in the country, is a mining company owned by both DRC (32%) and China with around 6.8 million tonnes in mineral reserves. At 3.5 million metric tons, DRC has 70% of the world’s cobalt reserves, according to the UN. Around 80% of the cobalt it produces goes to China for processing today.