Chinese firms have commenced construction on three major roads in the Democratic Republic of the Congo (DRC) following a new agreement to increase investment from $3 billion to $7 billion with state-owned mining company Gecamines. Under a joint venture, Sinohydro and China Railway Group will invest an additional $3 billion to develop a copper and cobalt mine, securing a 68% stake in the Sicomines joint venture.
The initial phase includes a $300 million project to construct a 63km ring road around Kinshasa, the capital city with a population of 17 million. Additionally, plans are underway to pave a 900km dirt road in the resource-rich Lualaba province, connecting Mbuji Mayi to Nguba, which will link to the highway between Kinshasa and Lubumbashi, the DRC's mining capital. An upgrade of the 230km road between Kananga and Kalamba Mbuji, leading to the Angolan border, is also part of the project.
Despite the increased investment, neither party has disclosed updated production guidance for cobalt and copper. This deal follows a history of disputes over a 2008 agreement where Chinese firms committed to a $3 billion investment in infrastructure in exchange for a 68% stake in the joint venture.
The DRC government had previously demanded an additional $17 billion in investment, which was eventually settled at $4 billion, including an annual commitment of $324 million for road infrastructure from 2024 to 2040, contingent on copper prices remaining above $8,000 per tonne. As of now, copper prices are above this threshold.
Chinese mining firms accounted for 59% of the DRC’s total cobalt production last year, with the DRC itself contributing 80% of global production. China's influence in the region continues to grow, with recent attempts to acquire local mining resources.
Mixed reactions have emerged regarding the potential benefits of the investment for the Congolese people. While Chinese officials tout the roads as pathways to prosperity, local experts express skepticism about the quality and longevity of previous infrastructure projects.
