The Conversation posted on 3 April 2019 an analysis titled "The DRC and China's Sicomines: Why Future Deals Should Be Different" by Andoni Maiza Larrarte, Universidad del Pais Vasco in Madrid, and Gloria Claudio-Quiroga, Francisco de Vitoria University in Madrid.
More than a decade on, the Sicomines minerals for infrastructure deal has not lived up to expectations. There have been infrastructure project delays as well as unexpected costs. The DRC will not receive any substantial income from the agreement in the foreseeable future. The Sicomines agreement never included any guarantee of the actual value that the Congolese population would get in exchange for the country's main source of wealth. The authors argue that future deals in Africa need to follow a new model.
Showing posts with label cobalt. Show all posts
Showing posts with label cobalt. Show all posts
Thursday, April 11, 2019
Friday, July 13, 2018
China's Consumption-led Growth and Impact on Africa
The New African published on 4 July 2018 an article titled "What Impact in Africa as China Shifts To Consumption-led Growth?" by Regina Jane Jere.
Based on a recent Moody's report, the author says China's shift from consumption-led growth will have mixed credit implications for African states, flattening the trade volumes of oil and iron ore exporters while benefiting the exporters of non-ferrous metals (copper, cobalt and aluminum) and tourist destinations in Africa.
Based on a recent Moody's report, the author says China's shift from consumption-led growth will have mixed credit implications for African states, flattening the trade volumes of oil and iron ore exporters while benefiting the exporters of non-ferrous metals (copper, cobalt and aluminum) and tourist destinations in Africa.
Wednesday, July 4, 2018
China Scales Down Investment in Democratic Republic of Congo
Foreign Policy published on 27 June 2018 an article titled "The Belt and Road Bubble Is Starting to Burst" by David G. Landry, international development consultant.
In 2007, the DRC signed a resource-for-infrastructure deal originally valued at $9 billion with a consortium of Chinese companies. The Chinese consortium misjudged the market it was entering and the project has been scaled back significantly. The author suggests the project is part of the Belt and Road Initiative (BRI), although it predates announcement of the BRI.
In 2007, the DRC signed a resource-for-infrastructure deal originally valued at $9 billion with a consortium of Chinese companies. The Chinese consortium misjudged the market it was entering and the project has been scaled back significantly. The author suggests the project is part of the Belt and Road Initiative (BRI), although it predates announcement of the BRI.
Wednesday, May 16, 2018
China-DRC: Resource-for-Infrastructure Deal
The China-Africa Research Initiative (CARI) at Johns Hopkins School of Advanced International Studies published in May 2018 a study titled "The Risks and Rewards of Resource-for-Infrastructure Deals: Lessons from the Congo's Sicomines Agreement" by David G. Landry, researcher and consultant.
The Sicomines resource-for-infrastructure agreement signed by the Democratic Republic of the Congo and China in 2007 outlined a mammoth deal worth over $9 billion. It was subsequently scaled back considerably but has remained highly contentious. This paper explores the agreement and highlights the role risk has played from its inception until now. The author concludes that the deal has become much less lucrative for China, largely due to the downward reevaluation of the copper mine's estimated deposits, the downward spiral in copper prices, the the delays and setbacks that have plagued the operations.
CARI also published a policy brief with the same title.
The Sicomines resource-for-infrastructure agreement signed by the Democratic Republic of the Congo and China in 2007 outlined a mammoth deal worth over $9 billion. It was subsequently scaled back considerably but has remained highly contentious. This paper explores the agreement and highlights the role risk has played from its inception until now. The author concludes that the deal has become much less lucrative for China, largely due to the downward reevaluation of the copper mine's estimated deposits, the downward spiral in copper prices, the the delays and setbacks that have plagued the operations.
CARI also published a policy brief with the same title.
Monday, February 12, 2018
The Congo, Cobalt, and China
Lima Charlie News posted on 4 February 2018 an article titled "Cobalt Mining, China, and the Fight for Congo's Minerals" by Lima Charlie.
The Democratic Republic of the Congo (DRC) holds half the world's cobalt reserves, a key component of rechargeable lithium-ion batteries that power iPhones and electric cars. China is a major importer of DRC cobalt as it tries to become the world's leader in electric car production. The DRC has proposed to raise taxes five fold on the metal in order to increase revenue. Chinese and other importers of cobalt are protesting vigorously.
The Democratic Republic of the Congo (DRC) holds half the world's cobalt reserves, a key component of rechargeable lithium-ion batteries that power iPhones and electric cars. China is a major importer of DRC cobalt as it tries to become the world's leader in electric car production. The DRC has proposed to raise taxes five fold on the metal in order to increase revenue. Chinese and other importers of cobalt are protesting vigorously.
Monday, October 23, 2017
China, Cobalt, Cars and the Congo
Bloomberg published on 17 October 2017 an article titled "Electric Car Makers Have an Africa Problem" by Leonid Bershidsky.
China is making a major push to produce electric powered vehicles. The batteries for these vehicles require cobalt. The Democratic Republic of the Congo (DRC) has almost half of the world's reserves of cobalt and more than half of mined cobalt today. Chinese state-owned companies mine much of the DRC's cobalt. The DRC uses the profits from cobalt to pay off huge Chinese loans. The DRC wants to see the price of cobalt rise and wants China to refine more cobalt inside the DRC so that it can pay down faster the loans to China. China wants to maximize the importation of concentrate ore and to limit price increases so that batteries for electric vehicles are competitive. This situation poses a dilemma.
China is making a major push to produce electric powered vehicles. The batteries for these vehicles require cobalt. The Democratic Republic of the Congo (DRC) has almost half of the world's reserves of cobalt and more than half of mined cobalt today. Chinese state-owned companies mine much of the DRC's cobalt. The DRC uses the profits from cobalt to pay off huge Chinese loans. The DRC wants to see the price of cobalt rise and wants China to refine more cobalt inside the DRC so that it can pay down faster the loans to China. China wants to maximize the importation of concentrate ore and to limit price increases so that batteries for electric vehicles are competitive. This situation poses a dilemma.
Monday, July 10, 2017
China and Angola: A Cautionary Railway Tale
Business Live posted on 6 July 2017 an account titled "Angola's Ghost Railway" by journalist John Grobler.
The rehabilitated 1,348 kilometer Benguela railway between Lobito port on the Atlantic and Angola's border with the Democratic Republic of the Congo (DRC) was to have served as the artery for exporting minerals from the DRC to the Atlantic. The railway, rehabilitated by the Chinese Railway Engineering Corporation and financed by sending Angolan oil to China, ends abruptly on the Katanga side of the Angola-DRC border, a casualty of Angola's crippled economy. The project has also been hobbled by inappropriate Chinese locomotives, faulty bridges, and poorly engineered rail sidings.
The author concludes that the rail project "seems destined to remain a very expensive, made-in-China white elephant."
The rehabilitated 1,348 kilometer Benguela railway between Lobito port on the Atlantic and Angola's border with the Democratic Republic of the Congo (DRC) was to have served as the artery for exporting minerals from the DRC to the Atlantic. The railway, rehabilitated by the Chinese Railway Engineering Corporation and financed by sending Angolan oil to China, ends abruptly on the Katanga side of the Angola-DRC border, a casualty of Angola's crippled economy. The project has also been hobbled by inappropriate Chinese locomotives, faulty bridges, and poorly engineered rail sidings.
The author concludes that the rail project "seems destined to remain a very expensive, made-in-China white elephant."
Monday, July 25, 2016
Chinese Firms Pursue Minerals in DRC
Mining.com just published remarks titled "Fresh Wave of Chinese Firms To Go after Congo's Riches - Report" by Cecilia Jamasmie.
It underscores that the Democratic Republic of the Congo remains one of the preferred destinations for exploiting copper, cobalt, and gold by Chinese companies. The information comes from a recent report done by BMI Research.
It underscores that the Democratic Republic of the Congo remains one of the preferred destinations for exploiting copper, cobalt, and gold by Chinese companies. The information comes from a recent report done by BMI Research.
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