Since 2015, less than 30% of the $3 billion investment promised by China has been spent. In a positive development, the Congolese president announced that negotiations with the Chinese regarding mining deals had secured an additional $7 billion to be used for infrastructure projects. However, analysts are skeptical that the $7 billion will materialize. The Chinese regime has been promising infrastructure to the Congo in exchange for mining access to its copper and cobalt for years. According to the agreement, Sinohydro and China Railway Engineering Corporation will pay Congo an annual royalty of 1.2 percent. The worldās largest cobalt producer with 70% of global cobalt reserves, the Congo has agreed to an exchange with Chinese state-owned firms for infrastructure projects.
Chinese companies are deeply invested in Congolese mining, owning 80% of the cobalt mines. Instead of financing infrastructure like the promised 3,500 kilometers of road, 31 hospitals, 145 medical centers, and more, Chinese companies have only spent $822 million since the agreement, with many believing that money to be used for corruption. The Congolese government is now skeptical and has requested the new investment to structure to $20 billion. The Chinese strategy to dominate cobalt mining is becoming more complex.
The Chinese regimeās āBelt and Road Initiativeā promised to invest huge amounts in infrastructure in exchange for access to resources, but many of the promises have not been realized. Detractors also argue that infrastructure projects have led to corruption scandals and environmental and labor violations in many nations. Concern about Chinese mining in Congo includes environmental hazards, labor rights abuse, and treating Congolese laborers as expendable. The potential promise of $7 billion is a limited short-term success while Congo remains without adequate revenue to improve infrastructure for the surrounding communities and people.