US open to DRC minerals deal: reports

The United States is open to talks with Democratic Republic of Congo (DRC) over a deal that would give it access to the African nation’s critical minerals in exchange for military support, according to the the Financial Times and Reuters. 

Word of possible discussions arose two weeks ago when President Felix Tshisekedi gave an interview to The New York Times stating that the Trump administration has shown interest in its vast minerals wealth. The country is contending with Rwanda-backed rebel group M23 controlling major parts of DRC’s east while smuggling minerals across borders.

Tshisekedi hasn’t publicly stated a proposal, instead urging countries to buy minerals directly from it instead of from others profiting from the conflict, such as Rwanda. There are several early-stage initiatives underway from DRC, sources from Congo’s presidency, its ministry of mines, and from Washington told Reuters on Sunday.

Africa’s second-biggest country is richly endowed and the world’s largest producer of cobalt. The DRC accounts for more than 70% of the battery mineral’s global output. It also holds significant reserves of gold, copper, tin, lithium and tantalum.

Two wars

While it’s unlikely for the U.S. to become involved directly in the regional quagmire that is eastern Congo, it could conceivably boost DRC forces with military equipment. The long-simmering area was the site of two major conflicts within the past 30 years including Africa’s so-called World War from 1998 to 2003. 

In a Feb. 21 letter to U.S. Secretary of State Marco Rubio from a lobbyist representing Congolese Senator Pierre Kandi Kalambayi, there was a proposal to grant American companies mining rights in exchange for U.S. support in training and equipping the Congolese armed forces. But Tshisekedi didn’t approve the suggestion, Reuters said, citing unnamed sources in the presidency. 

The U.S. could also view discussions as an opportunity to counter China’s dominance in the African nation’s mining sector. However, there are no U.S. mining companies operating in DRC at the moment.

Some of the largest foreigners beside Chinese companies are Canadian Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) with its Kamoa-Kakula copper complex in partnership with China’s Zijin Mining; Barrick Gold’s (TSX: ABX; NYSE: GOLD) Kibali mine; and Swizerland-based Glencore’s (LSE: GLEN) Kamoto copper and cobalt mine.