Beijing’s dominance in the resource-rich central African nation Democratic Republic of Congo (DRC) may complicate Washington’s ambitions to de-risk its critical minerals from China’s supply chains, according to new analysis.
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London-based minerals research and pricing firm Benchmark Mineral Intelligence said that most of the DRC’s cobalt – a crucial component in electric vehicle batteries and other electronics – is already in the hands of mining companies from China.
Chinese companies control two-thirds of cobalt in the DRC, which accounts for an estimated 74 per cent of global output, putting it at a “high risk” of falling foul of the foreign entity clause in the US Inflation Reduction Act (IRA).
CMOC, previously known as China Molybdenum, is a top cobalt producer from its two main sites in the DRC – Tenke Fungurume mine and Kisanfu project – and a potential target for the IRA’s foreign entity of concern clause (FEOC), Benchmark Minerals said.
Benchmark’s study noted that 60 per cent of the global supply of mined cobalt in 2024 is expected to come from assets classified as FEOC or at “high risk” of becoming part of that category.
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The clause captures entities owned, controlled or subject to the jurisdictions of China, Russia, Iran and North Korea.