US-DRC Minerals Agreement Could Challenge China’s Grip

Discussions between the Democratic Republic of Congo (DRC) and the United States over a potential “minerals-for-security” deal are raising eyebrows, as the agreement could shift the balance of power in the country’s mining sector, currently dominated by China.

However, experts caution that there are still several hurdles to overcome before the deal can take effect.

With violence intensifying in the eastern regions of the DRC, where M23 rebels, allegedly backed by Rwanda, have taken control of vital towns, the government in Kinshasa has proposed giving the United States greater access to the country’s rich mineral resources. In exchange, the DRC is seeking U.S. military support, security guarantees, and investment, aiming to reduce its heavy dependence on China.

The idea behind the deal is for the U.S. to use its diplomatic and economic influence to help stabilize the region, while securing vital minerals for American industries. This new approach could create a fresh wave of competition for China, which has long been a major player in the DRC’s mining industry.

“President Tshisekedi and I discussed the potential for a minerals agreement, and we’ve charted a path forward,” Massad Boulos, a senior adviser on African affairs to former U.S. President Donald Trump, told reporters during a recent visit to Kinshasa.

Many experts are drawing comparisons between this new initiative and a 2007 agreement between China and the DRC. Under that deal, Chinese companies provided infrastructure development in exchange for mining rights to valuable resources like copper and cobalt.

Joseph Cihunda, a professor at the University of Kinshasa and senior official at Southern Africa Resource Watch, believes that the new agreement would likely involve the transfer of military aid, training programs, and investment in industrial sectors. However, he warns that balancing the interests of both the U.S. and DRC could be challenging.

In addition to the minerals deal, the U.S. is also supporting the Lobito Corridor railway project, which connects the DRC, Angola, and Zambia. The project aims to make it easier to transport minerals and reduce the DRC’s reliance on China for trade and infrastructure.

Despite these efforts, experts say attracting U.S. investors to the DRC remains a tough sell. Dr. Wei Shen, from the Institute of Development Studies in the UK, notes that American companies are wary of the political instability in the DRC, and U.S. banks are hesitant to fund businesses there.

“Getting U.S. corporations and Wall Street on board would be key to making this deal work,” said Dr. Shen. “But even if investments start to flow, much of the mineral output may still be processed in China due to existing agreements.”

The DRC is a crucial player in the global mining sector, producing 70% of the world’s cobalt, which is essential for electric vehicle batteries and smartphones. The country is also rich in copper, gold, lithium, and tantalum.

For years, Chinese companies have dominated the sector, thanks to large-scale agreements like the 2007 deal, which saw China invest billions of dollars in exchange for mining rights. While this deal was renegotiated in 2023 after complaints from the DRC, China’s influence remains deeply entrenched.

Chris Berry, president of House Mountain Partners, a consultancy based in the U.S., says the Trump administration’s strategy is focused on securing resources in exchange for restoring stability, rather than humanitarian aid.

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But even with this strategy, Berry points out that U.S. investors will need to see long-term peace in the DRC before committing any significant funds. “Investors will need to see a sustained peace before making major investments,” he explained. “This could still be a tough sell for American companies, especially when China has extensive experience operating in unstable regions.”

In the wake of Boulos’ visit, U.S. mining company Alphamin Resources announced that it would resume operations at its Bisie tin mine in eastern DRC after M23 rebels withdrew following talks.

While Rwanda denies any involvement with the M23, Professor Cihunda notes that much of the DRC’s mining potential remains untapped, providing ample opportunities for new investors.

“There is a huge opportunity for mining and exploration in the DRC,” he concluded. “The key challenge will be improving the business environment to attract investment.”