Congo will push gently to amend Chinese mining deals

Significance

In particular, the Democratic Republic of the Congo (DRC) has indicated it hopes to renegotiate a USD6.5bn minerals-for-infrastructure deal signed with two Chinese state-owned firms in 2008, which it claims the Chinese firms have failed to honour.

Impacts

• Beyond this review, DRC may take a stronger line with investors in the mining sector as it seeks to make better use of its resources.
• China’s dependence on DRC’s minerals will only increase as it attempts to increasingly transition towards green technologies.
• The government may not pursue allegations of corruption related to the deal robustly given the potential for political fallout.