china congo relations: Democratic Republic of the Congo will Scrape mining deal with China, Big blow to Xi Jinping
After Asia, China, which is trying to entrap African countries in the web of its economic diplomacy, is going to get a major setback. The government of the Democratic Republic of Congo has started reviewing a mining deal with China worth about 44 thousand crores. Congolese Finance Minister Nicolas Kazadi said the government was reviewing mining contracts signed with Chinese investors. The deal is worth $6 billion, which is named the infrastructure-for-minerals deal.
Congo government set up inquiry commission
President Felix Tshisekedi said in May that some mining contracts may be reviewed because they are not sufficiently benefiting Congo. Congo is the world’s largest producer of cobalt and Africa’s major miner of copper. For this reason, China has been keeping its greedy eyes on this country for many years.
Congo signed a deal with China in 2007
The Congolese government announced this month that it had set up a commission to reevaluate reserves and resources at the China Molybdenum massive Tenke Fungurume Copper and Cobald Mine. Through this, the government wants to strengthen the claim of its rights. Finance Minister Nicolas Kazadi said in an interview that the 2007 deal was with Chinese state-owned companies Sinohydro Corp and China Railway Group Ltd.
Chinese companies kept silent
Sinohydro and China Railway did not comment on Reuters’ question on this announcement by the Congolese government. Eli Tsinguli, deputy director general of the Sikomine Copper and Cobalt joint venture, also did not respond. Most of this joint venture is owned by Chinese state-owned Sinohydro and China Railway.
China violated the terms of the contract
In the previous government of the Congo, President Joseph Kabila gave China’s Sinohydro and China Railway a 68 percent stake in the Sikomine venture. In return, Chinese companies agreed to build roads and hospitals in the Congo. The deal was then the most important part of former President Kabila’s development plan. But critics say China has completely ignored some of the promised infrastructure projects.
China investing heavily in African countries
In the year 2020, when the whole world was troubled by the corona virus epidemic, then China had invested more than 33 thousand crores in many countries of Africa. China’s move can be gauged from the fact that it is investing in many projects in Africa’s oil, gas and mineral producing countries.
Nigeria has given the highest loan
Last year, the China Development Bank (CDB) and the Export-Import Bank invested at least $3.1 billion in the Ajokuta-Kaduna-Kano natural gas pipeline project in Nigeria. China has reduced its investment in energy projects by at least 43 percent in 2020 compared to 2019. However, the reason for this is being attributed to the corona virus epidemic. Due to the epidemic, the work of projects in the African country came to a standstill, while China had to spend on health in its own country.
China has invested money in these African countries
China’s China Development Bank (CDB) and Export-Import Bank of China (Exim Bank) are making massive investments for hydro power stations in Ivory Coast and Rwanda and solar facilities in Lesotho. Apart from these countries, these two state-owned Chinese banks have also financed projects worth billions of dollars in Bangladesh, Pakistan, Cambodia and Serbia. A large part of this amount is associated with the Belt and Road Initiative, the ambitious project of Chinese President Xi Jinping.
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