By:Thinkchina

In the southern Democratic Republic of Congo (DRC), the Katanga Plateau embodies Africa’s vast untapped potential, hosting the world’s largest copper mine, Tenke Fungurume Mining (TFM). Twice the size of New York City, and driven by Chinese metals giant CMOC Group Ltd. and local state-owned miner Gecamines, the operation has navigated a labyrinth of challenges to emerge as a linchpin in the global commodities market.

After a protracted two-year negotiation with the DRC government, CMOC retained its 80% stake in TFM while agreeing to an US$800 million equity transfer over six years. This compromise reflects the complex dynamics of mining in the former Belgian colony, Africa’s second-largest country by land area and population, where corporate and national interests collide. Partnering with commodity behemoths like Glencore and Trafigura after guaranteeing its exclusive selling rights, the DRC government aims to leverage its mineral wealth to capitalise on booming demand for copper and cobalt.

Global commodities markets are surging, driven by the energy transition and demand for materials essential to electric vehicles, power grids and artificial intelligence. Copper prices peaked at US$11,100 per ton in 2024, with TFM output projected to rise 60% to 450,000 tons this year. Combined with CMOC’s nearby Kisanfu mine, the company’s production is set to reach 600,000 tons, solidifying China’s dominance in the region.

The DRC holds 15% of global copper deposits and over 50% of cobalt reserves, with grades far surpassing China’s own resources. These critical metals, vital for the clean energy transition, make the DRC’s underdeveloped copper-cobalt belt a prime opportunity for latecomer Chinese investors.

“Africa is worth exploring,” said Zhang Weibo, chief researcher at the Mining Policy Institute of the International Mining Research Center under the China Geological Survey, noting that the continent’s vast resources, high profitability and manageable risks make it a viable investment destination.