The Democratic Republic of Congo’s mining agreement with a Chinese consortium faces serious criticism from NGOs for financial disadvantages and lack of transparency. The renegotiated deal allegedly continues to favor Chinese interests and may result in significant losses for the DRC. Activists advocate for reopening negotiations to secure a fairer agreement, emphasizing the poor alignment of benefits under current terms.
A mining agreement between the Democratic Republic of Congo (DRC) and a Chinese consortium is being scrutinized once more by non-governmental organizations (NGOs) and civil society groups. These entities assert that the recently renegotiated contract continues to favor Chinese interests over those of the Congolese state, which is anticipated to suffer a $132 million loss in 2024 alone. The coalition known as CNPAV, translating to “Congo is not for sale,” is advocating for the government to re-initiate negotiations to secure a more equitable agreement.
Originally signed in 2008 during the presidency of Joseph Kabila, the controversial “contract of the century” allowed Chinese companies to access significant copper and cobalt mines in exchange for infrastructure development. The terms were renegotiated in early 2024, with expectations of generating nearly $4 billion in additional benefits for the DRC. However, critics argue that the revised terms did not adequately address earlier inequities.
One major concern expressed by CNPAV is the reliance on the fluctuating copper market for infrastructure funding. The DRC is set to receive $324 million annually over the next 20 years, but this figure is contingent upon copper prices remaining above $8,000 per tonne. Should prices dip below this threshold, the DRC could receive significantly less. Furthermore, even if prices surge to $12,000 per tonne, the DRC will still receive the same $324 million, limiting its ability to leverage market highs.
Another criticism pertains to the rigid payment structure, which does not account for the quantity of minerals mined. Baby Matabishi, coordinator at the Carter Center-DRC and member of CNPAV, expressed concerns about this structure, stating, “Everything depends on the price of copper. There is this volatility and uncertainty of price, which doesn’t necessarily guarantee that the $324 million is secured.” He further questioned the logic of a system where companies producing varying amounts of copper pay the same amount.
CNPAV also condemned the ongoing tax exemptions provided to Chinese firms, which they estimate cost the DRC at least $100 million each year. While the Kinshasa government contends that infrastructure improvements will compensate for these losses, civil society organizations argue that many promised projects remain unfinished or are below expected standards.
In conclusion, the revised mining agreement between the DRC and China has reignited concerns regarding financial losses and a lack of transparent terms. NGOs and civil society groups highlight the agreement’s dependence on volatile copper prices and a fixed payment structure that benefits Chinese companies over the Congolese state. Calls for renegotiation emphasize the need for equitable terms that reflect the DRC’s resource potential, as current arrangements appear inadequate to safeguard national interests.
Original Source: allafrica.com
