The Democratic Republic of the Congo (DRC), home to 15% of the world’s copper reserves and over 50% of its cobalt, represents a prime opportunity for Chinese investors seeking to capitalize on these critical metals. The DRC’s Katanga Plateau, which hosts Africa’s largest copper mine—Tenke Fungurume Mining (TFM)—is a focal point for China’s mining ambitions. This mine, nearly twice the size of New York City, is driven by the Chinese metals giant CMOC Group Ltd. and local state-owned miner Gécamines, and is vital to the global commodities market.
After a protracted two-year negotiation with the DRC government, CMOC retained an 80% stake in TFM while agreeing to an $800 million equity transfer over six years. This agreement reflects the complex dynamics of mining in the DRC, where corporate and national interests often clash. Partnering with global commodity giants like Glencore and Trafigura, the DRC government aims to leverage its mineral wealth to meet rising global demand for copper and cobalt.
The energy transition and the increasing demand for electric vehicles, power grids, and artificial intelligence are driving a surge in global commodities markets. Copper prices hit a peak of $11,100 per ton in 2024, and TFM’s output is expected to increase by 60%, reaching 450,000 tons this year. With the addition of CMOC’s Kisanfu mine, the company’s total production will reach 600,000 tons, strengthening China’s dominant position in the region.
The DRC’s vast mineral wealth makes it an attractive investment destination for China, as the country holds vast untapped copper and cobalt reserves with much higher grades than China’s own resources. Zhang Weibo, chief researcher at the Mining Policy Institute of the China Geological Survey, remarked, “Africa is worth exploring,” noting that the continent’s resources, high profitability, and manageable risks make it a favorable investment hub. Chinese companies now control over 70% of the DRC’s copper production, with investments exceeding $20 billion. Companies like China Railway Group and Zijin Mining Group have revitalized the sector, filling the gap left by Western companies wary of the region’s risks.
Copper is viewed by Chinese metal extractors as a secure long-term investment due to relatively fixed mining costs and rising prices. This has prompted many Chinese companies to expand rapidly and monetize their investments, an executive at a Chinese smelter in the DRC shared with Caixin.
However, developing the DRC’s vast natural resources is not without challenges. Corruption, poor infrastructure, and an unreliable power supply plague efforts to fully realize the country’s potential. Mining contributes 75% to the DRC’s GDP, making these obstacles critical to address. In response, Kizito Pakabomba Kapinga, Minister of Mines of the DRC, spoke at the China Mining Conference in Tianjin, pledging to develop infrastructure, improve traceability, and combat corruption to ensure the mining industry’s sustainable growth. “We aspire to be more than just an exporter of raw minerals—we want to become an important part of the battery and emerging technology supply chains,” he said.
Geopolitical tensions are also at play, with the US, Europe, and Japan seeking to challenge China’s dominance in the DRC. While China has consolidated its hold on the region’s mining sector, the US and Europe have made moves to secure their place. In 2022, the US signed a memorandum with the DRC and Zambia to develop local battery industries, pledging $30 billion in investment. The EU followed suit in 2023 with similar agreements. Despite these ambitions, analysts note that progress has been slow, as many agreements remain non-binding and corporate strategies have yet to yield substantial results.
As part of the DRC’s broader strategy to modernize its economy, President Félix Tshisekedi has signaled openness to foreign investments that combine Chinese infrastructure development with Western technological and market expertise. During a 2023 visit to China, Tshisekedi proposed leveraging the DRC’s lithium project in Manono to attract both Chinese infrastructure investment and Western manufacturing know-how.
A key component of the DRC’s ambitions is moving from being a raw material exporter to a player in value-added industries, particularly in the electric vehicle and battery markets. However, experts highlight challenges in infrastructure and industrial capacity. As one Chinese-funded project financial officer noted, “Industrialisation in the DRC suffers from a lack of infrastructure and skilled labour, with even semi-skilled workers scarce.” Power shortages further complicate operations, as miners frequently rely on backup generators due to regular power outages.
Chinese miners are attempting to address these issues by repairing old hydropower units, importing electricity, and building dedicated power lines. While short-term solutions such as solar energy and storage are underway, long-term solutions will require large-scale hydropower projects, such as the delayed Inga III project, which has faced financing challenges.
Infrastructure is also a significant barrier. The lack of reliable transport networks, deteriorating railways, and inadequate highways hinder the efficient movement of goods and resources. Experts like Antoine Roger Lokongo, associate professor at Joseph Kasa-Vubu University in the DRC, argue that building a nationwide transportation network is key to unlocking the country’s resource potential.
Despite the instability, Chinese firms have proven resilient, utilizing their engineering expertise, mining skills, and cost-efficiency to navigate difficult conditions. CMOC has cut production costs at TFM by $500 per ton, while Jinchuan Group has extended the life of the Ruashi mine by innovating methods to process lower-grade ores.
However, the Chinese model is not without criticism. Critics argue that while Chinese mining companies excel in efficiency, they may lack a focus on long-term planning, safety standards, and sustainable practices, areas where Western firms tend to have a stronger track record. Experts such as mining consultant Ge Yunbo argue that Chinese miners should adopt higher operational standards to enhance their global reputation.
The renewed competition from Western powers highlights the global importance of the DRC’s mineral wealth. As the world’s leading source of cobalt and copper, the DRC finds itself at the center of a geopolitical struggle, with the US and Europe trying to reclaim influence over the region’s resources. Despite these efforts, the DRC remains firmly in China’s grip, with Chinese companies continuing to shape the future of the global mining industry.
This article was originally published in Chinese by Caixin Global as “Cover Story: China Digs In to Boost Mining in Democratic Republic of Congo.”
