African Critical Minerals: China Invests $165 Million in a Copper Smelting Plant in the Democratic Republic of Congo

¬ Dowstone Technology, a Chinese company, will invest $165 million in a new copper smelting plant

¬ In 2024, China imported 36% of its copper from the Democratic Republic of Congo, up from 10% in 2020

The government of the Democratic Republic of Congo seeks to reduce its reliance on Chinese mining partners, who control 80% of the business.

Chinese battery material producer Dowstone Technology will build a $165 million copper smelting plant in the Democratic Republic of Congo (DRC), further strengthening China's already dominant position in the refined copper industry.

The company announced the project on July 3, stating that the new factory will produce 30,000 tons of cathode copper annually, pending approval from Congolese and Chinese regulatory authorities.

This investment highlights the growing footprint of China in one of the world's most critical copper regions. In 2024, the DRC's copper supply accounted for 36% of China's copper imports, a significant increase from 10% in 2020. This growth reflects China's ongoing investment in local copper mining and refining infrastructure.

Dowstone is already operating in the Democratic Republic of Congo, and it is expected that its total annual capacity for copper cathodes in the country will exceed 60,000 tons by the end of 2024. Other Chinese producers have also established major copper processing operations in the country. China Nonferrous Metals Mining Company (CNMC) operates the Luilaba Smelter, which began operations in 2020 with an annual capacity of 100,000 tons.

Meanwhile, Zijin Mining and CITIC Metals signed long-term mining agreements with Canadian Ivanhoe Mines, securing 80% of the output of the Kamoa-Kakula smelter, which is expected to start production in September 2025. With an annual capacity of 500,000 tons, it will be the largest copper smelter in Africa. Zijin Mining holds a 39.6% stake in the Kamoa-Kakula mine.

These investments have already yielded returns. In 2024, refined copper exports from the DRC to China increased by 71%, reaching 1.48 million tons.

China remains the world's largest consumer and refiner of copper and other strategic minerals. The Democratic Republic of Congo is the leading copper producer in Africa and the second-largest globally, making it a key component of China's supply chain strategy.

However, the Congolese government is concerned about its heavy reliance on Chinese investors. According to Deputy Minister of Mines Marcelin Paluku, 80% of the DRC's mining activities involve Chinese partners, which poses a "risk" to the economy.

To address this, Kinshasa is actively seeking to diversify its mining partnerships, targeting countries such as the United States and Saudi Arabia. It remains uncertain whether this shift will affect the pace or scale of future Chinese investments.

Source: ecofinagency

Original: https://www.toutiao.com/article/1837108311576576/

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