Congo Partners with U.S. to Export Copper to Saudi Arabia, UAE

The Democratic Republic of Congo (DRC) has initiated a significant partnership with Mercuria Energy Group Ltd. to export copper to Saudi Arabia and the United Arab Emirates. This venture, backed by the U.S. International Development Finance Corporation (DFC), reflects a strategic move to counter China’s dominance in the global supply of critical metals. According to a statement from the DFC on February 4, 2023, Congo’s state-owned mining company, Gecamines, will provide 50,000 tons of copper cathode through this joint venture.

This partnership is part of a broader effort by the U.S. government to diversify supply chains and secure access to essential minerals for its allies, particularly amidst rising geopolitical tensions. The DFC is currently in discussions to finance this venture, which has already committed to shipping 100,000 tons of copper to the United States by January 2026. Ben Black, CEO of the DFC, emphasized the importance of this collaboration, stating, “Growing cooperation between the U.S. and the DRC ensures valuable critical minerals are directed to the U.S. and our allies, and strengthens the economic viability of our African partners.”

Strategic Objectives and Market Dynamics

The announcement was made during an international critical minerals conference held in Washington, D.C., on February 4. It comes at a time of extreme volatility in metals markets, as nations and traders seek to secure stable access to minerals vital for technology, energy, and defense applications. Chinese companies currently dominate the copper and cobalt mining sectors in the DRC, making this partnership a crucial step for the U.S. in reducing its reliance on Chinese resources.

A DFC official, speaking anonymously, noted that supporting this deal is part of a concerted effort to steer the flow of key minerals away from strategic competitors like China. While the initiative aims to enhance supply chain security, it is also viewed as a commercial project that is expected to yield a return on investment for the U.S. government.

Mercuria has not commented publicly on the deal, and Gecamines did not respond to inquiries regarding the partnership. Nevertheless, the implications of this agreement are significant, as it not only opens new markets for Congolese copper but also highlights the U.S. government’s willingness to engage in ventures that may have previously been considered too risky.

Geopolitical Context and Future Prospects

Congo, as the world’s second-largest copper producer and a leading source of cobalt, offers the U.S. strategic access to critical minerals that are essential for modern technologies. The DRC has also indicated a desire for U.S. support in addressing internal conflicts, particularly a rebellion in the eastern part of the country that is reportedly backed by Rwanda.

This partnership with Mercuria illustrates the lengths to which the U.S. administration is willing to go in order to mitigate its dependence on China. By facilitating the export of Congolese minerals to Middle Eastern allies, the DFC is not only supporting economic development in the DRC but also reinforcing strategic alliances in a rapidly changing global landscape.

As the situation develops, the implications for both U.S. and Congolese economies, as well as the global mineral markets, will become clearer. The DRC’s potential to emerge as a key player in the supply of critical minerals to the U.S. and its allies may reshape the dynamics of international trade in this sector.