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United States hopes to get share of DR Congo copper production

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United States hopes to get share of DR Congo copper production
  • In vast warehouses at the Kamoa copper mine in the south-eastern Democratic Republic of Congo, mountains of reddish rocks pile up as the machines grind away day and night.

    The deposit, reputed to be the largest in Africa, is one of the Democratic Republic of Congo's hidden treasures - which are at the centre of a global race for critical minerals.

    In the ultra-modern installations, thousands of workers churn out the red gold, coveted by international markets for its exceptionally high copper content.

    “Kamoa at the moment is one of the largest copper mines in the world and growing to become the largest copper mine in Africa and probably the fourth largest in the world,” said its managing director Annebel Oosthuizen.

    It is aiming to churn out half a million tonnes from 2028, she added, "right up there in terms of world capacity".

    The copper produced at the mine is used in many products including electronic devices like smartphones and computers, as well as electrical wiring, motors, and generators.

    The deposit is one of the Congo’s hidden treasures which are at the centre of a global race for critical minerals.

    Kamoa’s ore is much sought after as it has a copper content four times higher than the global average.

    The DRC is one of the biggest sources of critical metals indispensable to global industry, also producing more than half of the world’s supply of cobalt.

    China has long been mining it. Now the United States is vying for a share in the Congo’s mineral wealth, seeking to challenge Beijing's hold on the strategic resources.

    Copper and cobalt are essential for the manufacture of smartphones, computers, cars, and batteries. Copper conducts electricity, while cobalt allows that energy to be stored.

    These minerals are also vital to aeronautics, defence, and renewable energy.

    The United Nations Conference on Trade and Development said global demand for copper is expected to rise by more than 40 per cent by 2040, while demand for cobalt is set to quadruple by 2030.

    Kamoa Copper S.A. is a joint venture owned in equal parts by Canada's Ivanhoe Mines, and China's Zijin Mining, with the Congolese state holding a 20 per cent minority stake.

    China has invested massively in the country for nearly 20 years and is estimated to account for 70 per cent of mining activity, according to the Congolese chamber of mines.

    But in December, Kinshasa accepted a strategic partnership agreement with Washington, part of a peace accord for the DRC which has been plagued by conflict for more than 30 years.

    The accord has so far failed to end fighting in the east of the country but an initial list of 25 mining sites has been submitted to Washington for potential investment or exploitation licences.

    In February, commodities giant Glencore signed a memorandum of understanding with the US-led Orion Critical Mineral Consortium to grant the latter a potential 40 per cent stake in the Swiss conglomerate's DRC mining assets.

    "This will allow the United States to benefit from production coming out of the DRC through Glencore," Marie-Chantal Kaninda, president of Glencore DRC said.

    The head of the state-owned General Cobalt Company, Eric Kalala, said the US–China rivalry in the global race for strategic minerals "is not our war".

    General Cobalt holds a monopoly over the marketing of non-industrial cobalt production in the country.

    Kalala said they were “working with everyone” and welcomed the fact that there was an appetite for investment in the DRC.

    “We are making an effort to try to attract them,” he said, adding that the country was open to all investors “provided it is for the good of Congo and the benefit of the investors themselves".

    The mining sector is the driving force behind the DRC’s economy accounting for about half of the country’s GDP estimated at $10.9 billion.

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