The Democratic Republic of Congo (DRC), with its rich mineral resources, has the potential to be one of the wealthiest countries in Africa.
In 2023, the DRC consolidated its position as the world’s second-largest copper producer, hosting 65% of the newly discovered copper reserves globally. This attractive potential continues to draw the attention of international companies. For example, Namib Minerals announced plans for an initial public offering (IPO) on the Nasdaq stock exchange, following a $500 million deal with Hennessy Capital Investment Corp. VI.
Strategic Reserves and Growing Demand
This deal, expected to be completed by early 2025, will enable Namib Minerals to finance its mining exploration activities in the DRC. The company holds 13 exploration licenses in the Haut-Katanga and Lualaba regions, and initial drilling efforts have revealed promising copper and cobalt deposits.
This interest coincides with the growing demand for copper, driven by the global energy transition. Analysts predict that by 2035, an additional one million tons of copper will be required annually. The DRC’s vast and untapped reserves position the country as a strategic player in meeting this demand.
Current State of DRC Mining
Currently, 70% of DRC’s mines are privatized. Companies like Anglo-Swiss Glencore, Dan Gertler, and Kazakhstan-based ENRC have secured significant shares of this wealth. Additionally, Chinese companies, through the state-controlled Sasac, control three-quarters of the country’s mining assets.
However, this situation has sparked criticism. Experts emphasize that foreign actors operate DRC’s Katanga region mines in an unplanned and profit-driven manner. This hampers the efficient and sustainable use of the country’s mining resources.
By managing its mines more rationally, the DRC has the potential to strengthen its own economy while contributing to the global energy transition. The new agreement with the U.S. could offer an important opportunity for the country to more effectively harness its resources.
