The Democratic Republic of Congo (DRC) has approached the United States for a Ukraine-like minerals deal, aiming to secure a viable alternative to China’s dominance while ensuring Washington’s access to critical minerals. However, experts caution that such an agreement comes with significant challenges.
The proposal came as U.S. President Donald Trump vowed to take “historic action” to “dramatically expand production of critical minerals and rare earths” in the country in a joint Congressional speech on Tuesday (March 4).
DRC offers minerals deal
Days after the DRC President Felix Tshisekedi floated the idea of a minerals-for-security deal in a New York Times interview, the African nation’s government last month wrote to Republican Senator Ted Cruz, who is also the Chairman of the Subcommittee on Africa and Global Health Policy, proposing an “enduring partnership” with the United States.
The letter, written by Aaron Poynton, the U.S. President of the Africa-USA Business Council, on behalf of the DRC government, pitched the African nation’s leadership position as the biggest supplier of cobalt and a major producer of lithium, copper, tantalum, and uranium “integral to U.S. industrial competitiveness and national security.”
It proposed to “formalize a long-term economic and security partnership” and offered U.S. access to strategic minerals, a deep-water port development, the establishment of a strategic stockpile of Congolese minerals and granting U.S. access to military bases.
The letter also highlighted that “China has historically dominated mineral supply chains in the DRC,” but stressed that a “recent policy shift from President Tshisekedi” presented “a rare opportunity for the U.S. to establish a direct and ethical supply chain.”
In an email response to VOA, a U.S. State Department spokesperson said that the “U.S. is open to discussing partnerships in this sector.”
The spokesperson also confirmed that they are “seeking more information on the President’s offer” and are in “regular contact with our DRC counterparts.”
The DRC proposal comes amid intense fighting between the government forces and Rwanda-backed rebels M23, who have captured at least 10% of its total territory in the eastern part of the country.
Christian-Geraud Neema Byamungu, a senior analyst covering China-Africa relations and an Africa Editor with the China Global South Project, a non-profit multimedia organization, argued that while the policy to diversify away from China started “years ago,” the latest offer stems from a “security imperative” arising out of the current conflict.
“The DRC (offer) encompasses two elements that the U.S. administration is looking for now - access to critical minerals and containing China’s presence in the critical mineral space.”
He added that Kinshasa is looking for a Ukraine-like deal where the DRC would provide mineral access “in exchange for security, peace and stability.”
Tom Sheehy, a distinguished fellow at the Africa Center at the United States Institute of Peace (USIP) also pointed out that the “Congolese would like to diversify from their over-dependence on China” as it gives the country “more options which would better serve them commercially.”
Before the outreach to the U.S., the DRC government also courted investors from Saudi Arabia, Europe and India in its bid to move away from Chinese reliance.
DRC’s mineral overdependence on China
The DRC supplies 70% of the world’s cobalt, an essential component for lithium-ion batteries that are required in industries such as electric vehicles, aerospace, defense, and other electronic products.
Chinese entities control or have stakes in 15 of the 19 cobalt mines in the DRC.
As the dominant player in the global cobalt supply chains, Beijing in 2022, imported 100% of DRC’s export of cobalt for processing and refinement.
Chinese investments in the DRC’s mining industry picked up in the 1990s. However, the biggest milestone came in 2008, when the government led by Joseph Kabila signed a $6 billion deal with Sicomines, a consortium of Chinese companies, which granted access to minerals in exchange for infrastructure development. According to the deal, the Chinese group promised infrastructure investment of around $3 billion.
Since then, Chinese entities have consolidated their presence in the country. In 2016, another Chinese mining company, China Molybdenum bought a controlling stake in Tenke Fungurume, a copper-and-cobalt mine from U.S. company Freeport-McMoRan.
However, Chinese companies have faced several allegations such as violating terms of agreements, participating in illegal mining and encouraging human rights abuses.
In January 2024, the DRC renegotiated the 2008 agreement after the government alleged that the Chinese group had not even invested $1 billion of the promised $3 billion. Sicomines agreed to now invest up to $7 billion on infrastructure.
Jacqueline Zimmerman, an Associate Program Manager of the Chinese Development Finance Program at AidData, a research lab, believed that Sicomines renegotiations represented “marginal wins for host government rights in a resource-rich nation over time.”
Tom Sheehy of the US Institute of Peace also highlighted that “China generally hasn’t respected the terms of the various agreements.”
“China still relies very heavily on Chinese labor at the expense of Congolese labor and there are environmental and corruption issues,” he added.
Byamungu of the China Global South Project pointed out that out of all Chinese mining investments, only two contracts related to Sicomines have been renegotiated and only one had the promise of creating infrastructure.
“Beyond the two contracts, you still have at least 15 or 16 other Chinese mining companies operating on the ground,” he added.
Despite billions of dollars in deals, the DRC remains one of the poorest countries in the world, which is blamed on weak governance structures, corruption, and political instability.
Will the U.S. Step in?
On day one of his second term, Trump signed an executive order — Unleashing American Energy — which detailed the new administration’s strategy on critical minerals.
The order promised to “assess the national security implications of nation’s mineral reliance” and establish the U.S. position as the “leading producer and processor of non-fuel minerals.”
Soon, the Ukraine minerals deal was on the table.
The signing of the agreement was delayed last week after a public showdown at the White House between President Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy.
According to the terms, an investment fund will be established and jointly managed by both countries, with the objective of utilizing the funds for Ukraine’s reconstruction. Though the agreement does not include any security guarantees but ensures U.S. economic participation.
Tom Sheehy of the USIP argued that a similar deal for DRC may not work as it’s a “fundamental political conflict.”
“There’s a tremendous amount of work that needs to be done to try to regularize and normalize and legitimize the development of Congolese natural resources,” he added.
Comparing the U.S. mineral strategy to China’s, Sheehy said the “U.S. is not going to go in and build infrastructure and have a state-supported model.”
“What the U.S. can do is bring its diplomatic support and work with the Congolese government, work with the neighboring governments, as it’s doing with the Lobito corridor and try to create an environment that is attractive to U.S. investment.”
The Lobito Corridor is the largest U.S.-led effort in Africa to counter China’s influence. The joint U.S.-EU project, approved under the previous Biden administration, would connect the Southern regions of the DRC, northwest Zambia and Angola and would allow the U.S. and other partner countries to access the region’s critical minerals.
However, Byamungu of the China Global South Project, countered that the Lobito Corridor model is not a “perfect blueprint.”
“I’m very much skeptical for that to be a model for any kind of cooperation that may happen in the context,” he added.
As the Trump administration considers the DRC’s offer, Brooke Escobar, the Interim Director of the Chinese Development Finance Program at AidData, highlighted how China’s strategic entrenchment in the mineral supply chains makes it challenging for Western companies to viably operate in the region.
“China uses its Belt and Road financing to provide subsidized credit to its firms — lowering the barriers to entry for new Chinese firms moving into the sector, and making the ongoing cost of doing business in the sector less expensive compared to companies from the U.S. or other western countries.”
“While the U.S. scrambles to react, China has spent over a decade methodically building and expanding its dominance in the transition minerals supply chain sector,” she added.
Sheehy also put the onus on the DRC government for ensuring a favorable investment climate.
“It’s going to take the Congolese doing more to make their investment opportunities attractive to Western investors. Hopefully, that process is starting,” he concluded.
