Congo seeks Saudi mining investors to curb China's dominance

Marcellin Paluku is a senior government official who told the media that the Democratic Republic of Congo (DRC), which is currently the world's largest cobalt producer, has been courting Saudi Arabian mining investors to diversify its economy and reduce its over-reliance on Chinese companies.

Paluku, a deputy cabinet-director in the Ministry of Mines, stated that the Congo, which also has a wealth of copper and other important minerals, is looking to form more partnerships with new investors in order to reduce the risk of being solely dependent on Chinese investors.

Over the last few years, Chinese companies, including some state-backed ones, have emerged as the largest investors in Congo. They are increasing investment and production of copper and cobalt.

CMOC Group has become the largest cobalt producer in the world after increasing output at Tenke Fungurume Mine, which it acquired from U.S. based Freeport McMoRan back in 2016.

Paluku stated that the dominant role of Chinese investors in the sector is now a "risk" for the economy.

"Today, 80 percent of our mines are with one partner, China." Paluku said in an interview at a mining conference held in Riyadh that it was a risk.

"You just never know...So we're now trying to diversify the partnerships we have so that we don’t rely solely on one partner."

Paluku stated that the Congo is also courting Indian and European Union investors. Paluku said that the country was looking to get away from joint ventures, which heavily favour investors.

Paluku stated, "We talk to everyone who is open to doing business with us."

(source: Reuters)