Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
In exchange for an agreement over their Sicomines copper and cobalt joint venture in the Democratic Republic of the Congo, Chinese construction companies have committed to investing up to $7 billion in infrastructure projects.
Both parties decided to keep the current shareholding structure in place, and according to a statement, the Chinese partners Sinohydro Corp and China Railway Group Limited will give Congo 1.2% of their yearly royalties.
The administration of President Felix Tshisekedi has been examining the agreement made by his predecessor, Joseph Kabila, whereby the Chinese partners had committed to construct hospitals and roads in return for a 68% share in the joint venture with the state mining firm of the Democratic Republic of the Congo.
Under the deal, the Chinese investors committed to spending $3 billion on infrastructure projects, but the state auditor – Inspection Generale des Finances (IGF) – last year demanded that the commitment be increased to $20 billion.
Tshisekedi instructed his government to hold talks with the investors ahead of a May 2023 visit to China. He had aimed to boost Congo’s stake in the joint venture to 70% from 32%.
“It is a win-win deal,” IGF head Jules Alingete said in a press conference, adding that negotiations were not easy.
Ernest Mpararo, head of the Congolese Anti-Corruption League, said the announcement was a step forward but flagged that Sicomines remained exempt from paying taxes.
He also pointed to money owed under the last agreement. A 2023 IGF report found that only $822 million of the $3 billion promised for infrastructure investments had been spent.
Congo is the world’s biggest producer of cobalt, a key component in batteries for electric cars and mobile phones. It is also the world’s third-largest copper producer. Chinese companies largely dominate its mining sector.
Also Read : Anglo-Americans explore Zambia despite African investment concerns Tosyali Algerie launches second DRI production unit
India’s steel stocks rose on Tuesday after reports emerged that the government is considering...
Business 19-Mar-2025
The Indian government is working with domestic steel producers to build a single platform for import...
Notification 16-Jul-2024
Tata Steel to cut ~800 jobs in the Netherlands, ~20% of Dutch workforce. Move aims to support susta...
Business 09-Apr-2025
The Competition Commission of India (CCI) declared that it has approved a proposal to acquire a 100%...
Large Corporate 14-Feb-2024
Alstom Transport India Ltd started the production of the driverless metro trainsets for the Chennai...
Business 08-Feb-2024
The Goa Industrial Development Corporation (Goa-IDC) is working with the Confederation of Indian Ind...
Announcement 23-Jan-2024