By: Reuters

Democratic Republic of Congo and China have signed a ​deal to deepen cooperation in the African nation's mining sector, Congo's government said, as ‌global powers jockey for influence in the strategically important minerals powerhouse.

Congo is the world's leading producer of cobalt and holds vast reserves of copper, lithium, coltan and other battery metals. Chinese companies led by top cobalt miner ​CMOC (603993.SS), Zijin (601899.SS), and Huayou (603799.SS), already dominate its mining sector. And Beijing is also Congo's ​biggest bilateral creditor.

However, the United States and other countries seeking supplies of the ⁠minerals needed for electric vehicle manufacturing and the energy transition are also courting Kinshasa.

Duty-free access, promotion of local processing 

Congo's exports to China are already due to benefit from duty-free access to China ​from May 1 under an initiative covering 53 African countries.

The new agreement sets out cooperation on geological data sharing, investment protection and the promotion of local processing of raw materials in Congo, according to the Congolese government statement ​published late on Thursday.

It also includes a monitoring mechanism to ensure projects comply with Congolese law ​and are implemented in a stable and transparent investment environment.

A flagship iron ore project in northeastern Congo, known ‌as MIFOR, ⁠will receive priority support from China, the statement said.

Courted by US and China, Congo hedges its bets 

"The U.S. will certainly take notice," Joshua Walker of NYU's Congo Research Group said of the new agreement. "It is clearly a riposte to Washington."

The Trump administration signed a strategic partnership with Congo in ​December to boost Western investment, redirect ​its mineral supplies ⁠and reduce China's dominance in critical minerals mining and processing.

Congo has since shared a list of priority assets with the U.S., though its government has said it ​would seek other partners if the deal with Washington fails to deliver concrete ​projects.

Walker noted ⁠that Congo's deal with the U.S. is broader and binding, trading security backing in eastern Congo, where Kinshasa has fought a years-long conflict with Rwandan-backed rebels, for mining access.

But as Beijing and Washington compete globally ⁠for ​resources, the Congolese government, which is seeking to capitalise on ​the country's vast reserves of critical minerals, is not picking sides.

"The DRC is clearly attempting to hedge its bets," Walker ​said.

Reporting by Ange Adihe Kasongo; Editing by Maxwell Akalaare Adombila; Editing by Robbie Corey-Boulet and Joe Bavier