China gains ground in DR Congo’s mining sector as Australian firm loses permits
DR Congo cancels AVZ Minerals' permits, then signs a strategic minerals MOU with China within eight days.
The Democratic Republic of Congo (DRC) has executed a rapid one-two punch that significantly reshapes its critical minerals landscape in favor of China. On March 19, the DRC's Mining Registry canceled the mining permits held by Australian company AVZ Minerals, citing non-payment of surface rights fees. This marks the second major setback for AVZ in three years, following the 2023 revocation of its massive Manono lithium concession. The company now has 30 days to appeal the decision, but its foothold in the country's lucrative mining sector is severely weakened.
Just eight days later, on March 27, DRC Minister of Mines Louis Watum Kabamba was in Beijing signing a Memorandum of Understanding (MOU) with China's Minister of Natural Resources, Guan Zhiou. The pact formalizes 'cooperation in the fields of geology and mineral resources,' establishing a structured framework for regular consultations between state institutions. It commits both parties to compliance with DRC laws and the protection of investments, signaling a long-term, government-backed partnership.
These consecutive actions are not coincidental but reflect a deliberate strategic pivot. The DRC, home to vast reserves of cobalt and copper essential for the global energy transition, is actively seeking partners who can deliver infrastructure and investment on a scale that matches its ambitions. Chinese firms, backed by state financing and a comprehensive 'mine-to-battery' strategy, have emerged as the preferred partners for many African nations tired of stalled projects from Western miners. This shift underscores the intense geopolitical competition for the raw materials that power electric vehicles and renewable technology, with China consolidating its supply chain dominance.
- DR Congo canceled Australian AVZ Minerals' mining permits on March 19 for non-payment of surface fees, the company's second major loss in the country since 2023.
- Eight days later, DRC and China signed a formal MOU on mineral resource cooperation, establishing a government-backed framework for partnership and investment protection.
- The moves signal a strategic pivot by the DRC toward Chinese partners, who offer integrated infrastructure deals, for control of its critical cobalt and copper reserves.
Why It Matters
This consolidates China's control over the cobalt and copper supply chain, critical for EVs and renewables, impacting global energy transition security and mineral markets.