(Ecofin Agency) - In recent months, Gécamines has intensified negotiations with foreign investors operating copper and cobalt mines in the country. The aim is to seek greater control over valuable resources to boost sector revenue.

Democratic Republic of Congo's state-owned miner Gécamines is seeking more control over copper and cobalt mines by demanding additional board seats in its joint ventures with foreign investors. Board chairman President Guy Robert Lukama announced the initiative as part of efforts to bolster Gécamines' influence in the management of the DRC's copper and cobalt mines.

In comments reported this week by Reuters, Lukama explained that the presence of local executives on boards of directors could enhance transparency, oversight of community development projects, and adherence to regulations on local content and the training of Congolese personnel. To achieve this objective, Gécamines is contemplating the revision of its contracts with foreign investors.

Once a leading copper producer in the 1980s, Gécamines has experienced a decline in performance amid low prices and inadequate investment. To revitalize copper and cobalt production, the DRC has relied on foreign investors, predominantly Chinese, who have secured operating rights for several mines in exchange.

Lukama questioned, "We want to rectify a certain stage of mistakes that were made when they asked us to give most of our best assets to third parties just to attract foreign direct investment [...]. The off-take was there to secure the flows of repayment of debt, now the debt is repaid, why should they keep it 100%."

DRC is the world's leading cobalt producer, accounting for over 80% of the supply in 2023, according to the Cobalt Institute. Additionally, as the third-largest copper producer in the world, the country's bargaining power has strengthened in recent years due to the escalating demand for these two metals crucial to the energy transition.

For instance, last year Gécamines successfully secured a payment of $800 million from China's CMOC after several months of dispute over mining royalties. Furthermore, Gécamines negotiated the right to acquire a portion of the Tenke mine's copper and cobalt production, up to its 20% stake in the project, as well as $1.2 billion in dividends over the mine's remaining life.