Mining

How transparency in mining contracts helped DRC secure $4 billion more Chinese contracts on major copper and cobalt projects

How transparency in mining contracts helped DRC secure $4 billion more Chinese contracts on major copper and cobalt projects
Tuesday, 02 April 2024 18:15

Last year, amidst criticisms over the outcomes of its "mines for infrastructure" contract with China, the DRC government renegotiated with the Asian giant, securing an additional $4 billion. This might have been impossible if the contract’s terms had not been disclosed.

The $7 billion agreement signed between China and the DRC in mid-March 2024 shows how important transparency and disclosure are in mining contracts. According to the Extractive Industries Transparency Initiative (EITI), disclosing the contract’s terms helped increase expected earnings from the partnership to $4 billion. The project, it should be recalled, covers the exploitation of copper and cobalt.

Sealed in 2008, the original agreement allocated $3 billion for infrastructure development in the DRC. However, its disclosure enabled several civil society actors to criticize the imbalance in contract terms between the Congolese and Chinese parties. This includes the local EITI committee in the DRC, which published a study in December 2021 denouncing "unprecedented prejudice in the history of the DRC."

Not only were essential infrastructures (roads, hospitals, etc.) not realized as planned but the copper reserves upon which the investment decision was made were undervalued. This observation was later confirmed by a report from the General Inspectorate of Finance, showing that the DRC only received $822 million since the deal was implemented, while Chinese firms earned almost $10 billion in profits. 

These criticisms sparked public debate around the "mines for infrastructure" contract, leading Congolese authorities to request its renegotiation. If the contract’s terms had not been disclosed, the Congolese state might have not signed this new agreement. The new deal, it is worth noting, helped the country secure $4 billion more to build around 5,000 km of roads.

"By aligning its efforts with national priorities, EITI-DRC leveraged EITI disclosures to conduct analyses and stimulate public debate, aiming to inform policies that strengthen revenue mobilization, ensure equitable resource distribution, and promote sustainable development," the EITI wrote in a blog post dated March 25, 2024.

Though the new deal is still criticized by the civil society, which is concerned about the secrecy surrounding the negotiations and terms still too favorable to the Chinese party, benefits obtained through previous disclosure should encourage Congolese authorities to continue on this path. This includes making public the method used to reach the new $7 billion figure and involving civil society more in negotiations on mining contracts, through public consultations, for example.

Emiliano Tossou

On the same topic
Panoro plans three-well initial development pending investment approval Project builds on active Dussafu Marin block, producing about 30,500 bpd The...
Egypt repays about $5 billion in foreign oil and gas arrears Government aims to cut remaining arrears to $1.2 billion by 2026 Payments...
Mineral resource estimates are often widely promoted by mining companies. Some lead to sharp stock market gains and make it easier to secure new...
Tin production rose 7% in 2025 while EBITDA increased 25%. Output exceeded targets despite a temporary halt at the Bisie mine. Record tin prices...
Most Read
01

The BoxCommerce–Mastercard Partnership introduces prepaid cards, giving SMEs instant access to e...

South Africa’s BoxCommerce Partners with Mastercard on SME Fintech Solution
02

Togolese banks provided 16.2% of WAEMU cross-border credit by September 2025 Regional cross...

Togo accounts for 16.2% of cross-border bank financing in WAEMU
03

Nigeria licensed Amazon’s Project Kuiper to operate satellite services from 2026, setting up dir...

Amazon and Starlink Set Up Satellite Internet Rivalry in Africa
04

Microfinance deposits in Togo increased by CFA11.9 billion, a 2.7% rise in the second quarter of 2...

Microfinance: Deposits in Togo Rise 2.7% in Second Quarter of 2025
05

Orange Côte d’Ivoire, with Eutelsat, introduced satellite internet to reach rural and underserve...

Satellite Internet Becomes the New Frontier in Africa’s Connectivity Race
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.