The Democratic Republic of Congo, the world’s leading cobalt producer, is seeking new mining investors from Saudi Arabia to help diversify its industry and reduce reliance on Chinese companies, according to Marcellin Paluku, a senior government official.
Paluku, who serves as deputy cabinet director in the Ministry of Mines, stated that Congo, also rich in copper and other critical minerals, aims to establish more partnerships with new investors to mitigate the risks associated with relying solely on Chinese investment, Reuters reported.
Chinese companies, many of which are state-backed, have become the largest investors in the Democratic Republic of Congo in recent years, significantly increasing investments and production of copper and cobalt.
CMOC Group, now the world’s largest cobalt miner, has ramped up output at the Tenke Fungurume Mine, which it acquired from U.S.-based Freeport-McMoRan in 2016.
However, Paluku, warned that the dominant role of Chinese investors in Congo’s mining sector now presents a “risk” to the country’s economy.
“Today, 80% of our mines, it’s with one partner (China). So it’s a risk,” Paluku told Reuters in an interview on the sidelines of a mining conference in Riyadh.
“You never know what can happen…So that means we are now trying to diversify our partnerships so we don’t rely on only one partner.”
Congo is also actively seeking investors from the European Union and India, according to Paluku. The country aims to shift away from current joint ventures that are heavily tilted in favour of investors. “We are talking to all those who are open to doing business with us,” Paluku stated.
