Ebola outbreak stalls US-DRC minerals talks, threatening 2 critical metals

A worsening Ebola outbreak in the Democratic Republic of Congo is disrupting travel and delaying meetings tied to a US-backed critical minerals partnership aimed at loosening China's grip on the country's copper and cobalt resources, three people familiar with the matter told Reuters.

"Our ambition remains to build a competitive, transparent mining sector that creates sustainable value," Congolese President Felix Tshisekedi told a cabinet meeting last week, according to minutes seen by Reuters. "That requires a stable legal environment, predictable administrative decisions and permanent dialogue between the state and economic operators."

The disruption comes as Congo, the world's leading cobalt producer and second-largest copper supplier, intensifies scrutiny of its mining sector. State auditors last year alleged that major miners including China's CMOC Group and Glencore Plc underreported billions of dollars in revenue, potentially reducing mandatory contributions to government development funds — allegations the companies denied. Copper traded at $5.6358 per pound, up 2.72%, while gold futures rose 3.84% to $4,713.30 per ounce.

The delay threatens to weaken near-term efforts to challenge China's stranglehold on critical mineral supply chains at a time when Beijing is expanding its toolkit. China recently launched Guangyan International Investment Co., also known as Vast Rock, a state-backed vehicle designed to support overseas resource acquisitions, according to people familiar with the matter. Chinese companies including CMOC have already built dominant positions in Congo's copper and cobalt sectors, transforming Indonesia's nickel industry and taking stakes in key iron ore projects.

China's Expanding Grip on Congo's Minerals

Chinese companies have been aggressive buyers of overseas mining assets for more than a decade, expanding in Congo's copper and cobalt production while Western rivals faced shareholder pressure to cut spending. Congo's state auditor alleged that CMOC, which operates the Tenke Fungurume copper-cobalt mine, underreported revenue — a claim the company denied. The new Guangyan vehicle, overseen by the National Development and Reform Commission, will provide support ranging from direct equity investment to advice on compliance and risk management, standardizing China's approach to international metals deals.

What's at Stake for Western Supply Chains

The US-backed partnership faces mounting headwinds beyond the health crisis. Tshisekedi last week ordered the removal of soldiers and police officers illegally present on mining sites, saying such practices fuel fraud and smuggling while damaging investor confidence. The president also instructed revenue agencies to prioritize dialogue over enforcement actions, after tax authorities shut down Glencore's local offices in a dispute. Glencore reiterated it is engaging with authorities while disputing any wrongdoing.

The Ebola-driven disruption could delay the US-DRC partnership, weakening near-term efforts to challenge China's dominance in cobalt and copper supply chains. Copper and cobalt prices may face upward pressure from supply chain uncertainty, while Western mining stocks with Congo exposure — including Glencore and Freeport-McMoRan — could see increased volatility.

This article is for informational purposes only and does not constitute investment advice.