Congo’s $7 billion deal with China linked to copper price under new contract
Driving Chinese to invest up to $7 bln in Congo mining infrastructure in 2024, Congo will get $324 million annually for infrastructure projects from its Chinese partners through 2040 as long as the copper price remains above $8,000 per ton. Look at this recent reporting from Bloomberg:
A revamped minerals-for-infrastructure deal between the Democratic Republic of Congo and China that will send billions of dollars in financing to the Central African nation is contingent on the price of copper, according to a newly published contract.
Congo signed an updated agreement in March to its 2008 deal to trade copper and cobalt from a joint mining venture known as Sicomines for development funding. Under the new contract published on May 3, Congo will get $324 million annually for infrastructure projects from its Chinese partners through 2040 as long as the copper price remains above $8,000 per ton.
Read: DRC Strikes New $7 Billion Mine Road-Financing Deal with China
Copper traded at $9,910 a ton Friday, according to data compiled by Bloomberg. The price has averaged $8,500 over the past 12 months and $7,937 over the past five years. The lowest price during that period was $4,630 in March 2020 at the beginning of the Covid-19 pandemic.
Most of the financing will go toward building national roads, most of which …..See more from Bloomberg here
China Investing up to $7 billion in Congo Infrastructure Projects
Earlier this years, China and Congo have reached an agreement over a joined venture investment deal, China investing up to $7 billion in infrastructure projects, which connected with the newly updating development that “Congo’s $7 Billion Deal with China Linked to Copper Price Under New Contract”. Look at earlier this year related article from Reuters:
The Democratic Republic of Congo and its Chinese investors have reached an agreement over their Sicomines copper and cobalt joint venture, they said in a statement on Saturday, with the Chinese investing up to $7 billion in infrastructure projects.
Both parties agreed to maintain the current structure of the shareholding, while the Chinese partners, including Sinohydro and China Railway group, will pay 1.2% of royalties annually to Congo, the statement said....See more from Reuters here
China Outbound Investment Highlights 2023-2024
Interesting that China's overall outward direct investment (ODI) increase in 2023. At the same time, Chinese enterprises also making growth. increase in overseas merger and acquisition (M&A) value, particularly, M&A activity in B&R partner countries surged.
However, China invests in Europe is shifting. Changing situation of Chinese FDI flows to Europe, in this period, the largest China M&A deal in Europe involved a Chinese company securing exclusive rights for a cancer treatment drug from a renowned British pharmaceutical company. See more on Chinese investors and investment firms in Europe update 2023.
In fact, Asia still remained the top M&A destination for Chinese companies. North America, Oceania and Latin America showed obvious growth in deal value. Also, in 2024, newly-signed China overseas engineering, procurement and construction (EPC) projects indicating growth.
Chinese investors in 23 investment sectors. All Chinese investors categorized by investment sectors. With China.org© Chinese Investors Directories upgrading your projects.
In addition, there are also Statistics Chinese companies in Europe by country. Discover what are detailed business locations, business contacts of Chinese companies in Europe? How many Chinese companies in each European countries? which European countries has the most Chinese companies?
Chinese companies in Europe by country with detailed business location and business contact, all are listed by individual European country that have most Chinese firms based. Chinese companies invested in Europe all has its head-office in China, branch-offices in Europe, such as Germany, Belgium, etc. There are 17 files are available, for those who needed, please contact us.
