Key Minerals in Africa: Competition Over Copper Export Routes – China-backed TAZARA Railway Upgrade Seen as Strong Competitor to U.S.-led Lobito Corridor

¬ Chinese companies will participate as shareholders in the $1.24 billion TAZARA railway upgrade project

¬ The project will strengthen the China-supported copper export route via Tanzania

¬ The U.S.- and EU-backed Lobito Corridor faces concerns over feasibility

China’s mining giants Zijin Mining and CMOC (China Molybdenum Co., Ltd.) will take part in modernizing the TAZARA railway corridor. Backed by China, this project is seen by some analysts as a strong competitor to the U.S.-supported Lobito Corridor.

The $1.24 billion TAZARA railway upgrade aims to alleviate congestion on the road network connecting southern Zambia and the Democratic Republic of the Congo (DRC), which currently handles most mineral cargo shipments destined for Dar es Salaam port in Tanzania.

According to information released last week, besides Zambia, CMOC and Zijin Mining will join CCECC (China Civil Engineering Construction Corporation), Jiayou International Logistics, and COSCO Shipping Holdings as shareholders in the project. Under the agreement, CCECC will hold 80% of the shares and oversee construction, while the other parties will each hold 5% and contribute financing proportionally.

The deal still requires approval from Chinese authorities. Beyond financing, the integration of CMOC and Zijin ultimately supports a broader strategy to build a complete logistics chain from mineral extraction to transportation. CMOC alone accounts for 21.9% of the DRC’s total copper exports in 2025 through its Tenke Fungurume and Kisanfu copper mines. Zijin Mining holds a 39.6% stake in the DRC’s largest copper complex, Kamoa-Kakula.

Competition Over Copper Export Routes

By participating in the modernization of the TAZARA railway, these two mining firms are reinforcing China’s position in the intense global competition among major powers over key mineral export routes.

Meanwhile, the United States and the European Union are advancing plans for the Lobito Corridor—a potential rival to TAZARA—aimed at linking mining areas in the DRC and Zambia with the Atlantic coast port of Lobito in Angola through upgraded rail and logistics infrastructure. Its goal is to provide faster export routes for strategic minerals, reduce costs and transportation time, and open up broader markets for the Copperbelt region.

For Washington and its partners, the project serves as a lever to redirect more minerals toward Western markets. This intent was reflected in the mining cooperation agreement reached between Washington and Kinshasa in December last year. According to Bankable, the agreement stipulates that 50% of copper, 30% of cobalt, and 90% of zinc sold by the DRC’s state-owned mining company will be transported via the DRC segment of the Lobito Corridor over the next five years.

Despite some initial advantages and progress, the economic viability of the Lobito project remains questionable. A report published last year by the European Centre for Development Policy Management (ECDPM) highlighted risks related to high transportation costs and insufficient support from mining operators. IRIS echoed similar concerns, pointing out the lack of a multinational public institution responsible for managing the project.

Source: ecofinagency

Original article: toutiao.com/article/1861858384675844/

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