The U.S. mining company, backed by Bezos and Gates, aims to secure rare minerals vital for the energy transition in DR Congo’s rich basin, a key move to compete with China.
This development is significant for the African continent as countries seek to secure mineral deals with the US, amid ongoing talks driven by efforts to reduce reliance on China for critical metals.
The newly appointed Director-General of KoBold Metals, Benjamin Katabuka, announced plans to utilize artificial intelligence in the DR Congo to discover untapped mineral deposits as US billionaires continue to invest heavily in the region.
As per The Financial Times, Berkeley-based KoBold raised $537mn in January from investors including Gates’s Breakthrough Energy Ventures, whose stakers include Bezos and former New York mayor Michael Bloomberg. The company has raised $1bn to date.
In that regard, President Trump’s senior adviser for Africa, Massad Boulos, revealed that he recently met with DR Congo President Felix Tshisekedi to discuss a potential US-DR Congo minerals agreement, paving the way forward.
“We’re having similar discussions with other neighboring countries,” Boulos stated. “Our role is to facilitate those private sector investments in the mining sector, including with American government funding” he added.
The US-China’s interest in Africa’s minerals
DR Congo is the world’s largest supplier of cobalt, a key component in electric vehicles batteries
However, the country is in the midst of an armed conflict that has disrupted mining activities and investment, particularly in the eastern part of the country, where the M23 armed group controls significant territories.
Many mines in the DR Congo are operated by Chinese companies, following the departure of major American mining firms, notably after Freeport-McMoRan sold its stake in the Tenke Fungurume copper mine to China’s CMOC in 2016
Western investors’ renewed interest could help counterbalance China’s dominance in DR Congo’s mining sector.
As the world’s demand for rare minerals, crucial for energy transition technologies like electric vehicles and renewable energy storage, continues to rise, DR Congo’s vast mineral reserves are becoming even more strategically important.
China has long been a dominant force in the region, controlling much of the extraction and trade of these minerals.
However, with the increasing focus on diversifying global supply chains and securing more sustainable and ethical sourcing, Western investors are stepping up efforts to enter the market.
This shift could challenge China’s stronghold, introducing more competition, fostering better transparency, and potentially leading to improved labor and environmental standards in the sector.
However, the country needs to develop essential infrastructure, including sufficient power supply and metal processing facilities.
