China gains ground in DR Congo’s mining sector as Australian firm loses permits

Congolese Minister of Mines Louis Watum Kabamba (left) and Chinese Minister of Natural Resources Guan Zhiou have signed a memorandum of understanding on “cooperation in the fields of geology and mineral resources”.

Photo: Louis Watum Kabamba Two significant decisions within eight days made by the government of the Democratic Republic of Congo reflect the current state of its mining industry, where Chinese companies have emerged as preferred partners.

On March 19, DR Congo’s Mining Registry announced the cancellation of mining permits held by Australia’s AVZ Minerals for non-payment of surface rights fees.

It was the second cancellation in three years suffered by the company in DR Congo after its Manono lithium concession was revoked by the government in 2023.

It has 30 days to appeal the latest decision.

Then, on Thursday in Beijing, DR Congo’s Minister of Mines Louis Watum Kabamba and China’s Minister of Natural Resources Guan Zhiou signed a memorandum of understanding (MOU) for “cooperation in the fields of geology and mineral resources”.

The pact will involve regular consultations between their state institutions, compliance with DR Congo’s laws and regulations, and protection of investments. “This memorandum establishes a structured framework for cooperation,” Kabamba said in a statement on Friday.

The contrasting actions reflect the current state of competition for critical minerals between Western mining companies and their Chinese counterparts in DR Congo, a country endowed with one of the world’s richest deposits of critical minerals.

Chinese companies, already estimated to control more than 70 per cent of the country’s reserves of cobalt, lithium, copper and coltan, now have a chance to tighten their grip.

DR Congo by some estimates holds about 70 per cent of the world’s reserves of cobalt and coltan, and 10 per cent of copper reserves.

Others include zinc, tungsten, tin, iron ore, gold and diamonds.

With the agreement, immediate attention is likely to focus on the Mines de Fer de la Grande Orientale (Mifor) project, where the government said an investment of US$28.9 billion would produce 50 million tonnes of iron within a year, and 300 million tonnes a year at peak production. “These prospects have aroused a keen interest on the part of the Chinese,” Kabamba said.

These developments may appear ominous for the interests of AVZ Minerals and other Western mining companies struggling for a foothold in DR Congo.

AVZ Minerals lost its orig

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