Chinese companies involved in the Sino Congolaise des Mines (Sicomines) copper and cobalt joint venture (JV) in the Democratic Republic of Congo (DRC) have committed to investing up to $7 billion in infrastructure projects. The updated agreement, reached after a thorough review with DRC President Felix Tshisekedi’s government, retains the original shareholding structure.
Under the revised terms, China’s Sinohydro and China Railway Group, integral parts of the JV, have agreed to pay 1.2% of annual royalties to the DRC. The initial deal, orchestrated by former President Joseph Kabila, granted the Chinese companies a 68% stake in the JV in exchange for their commitment to constructing vital infrastructure such as roads and hospitals.
The new commitment aims to address previous infrastructure spending shortfalls and simultaneously increase Congo’s stake in the JV from 32% to 70%. The move follows a detailed review initiated by President Tshisekedi, with a particular focus on enhancing the DRC’s share of revenue and addressing concerns about the Chinese companies not contributing their fair share to the country’s development.
The DRC, renowned as a major global producer of cobalt and copper, holds a significant position in the mining sector, where Chinese companies play a dominant role. The updated agreement reflects an effort to recalibrate the terms of engagement, ensuring a more equitable distribution of benefits and fostering sustainable development in the region. 
