DRC bags USD 7 bn minerals-for-infrastructure agreement with China: State-backed China Railway Group Limited and Sinohydro Corp have agreed to increase investments by USD 4 bn for a planned minerals-for infrastructure agreement with the Democratic Republic of Congo’s government owned mining firm Gecamines in exchange for a 68% stake in their copper-cobalt mining joint venture Sicomines, the company said. The DRC will also hold a 40% share in the Busanga hydropower plant powering the mine, according to the company. The revised investment scheme brings the total amount of investments up to USD 7 bn.

Over a decade in the making: The DRC had reached an initial agreement with China on the resources-for-minerals contract back in 2007, but the pact has been revised several times, with the DRC’s state auditor demanding last year the Chinese firms shell out a total of USD 20 bn — from the initially agreed upon USD 3 bn — on domestic infrastructure projects in return for the mining shares they seek, Reuters writes.

REMEMBER- China is sinking USD bns in Africa’s mining sector: Chinese firms were awarded lithium exploration and energy production licenses that could amount to USD 2.79 bn worth of investments pouring into Zimbabwe last November. The continent is home to 5% of the world’s total lithium supplies, and mining expansions are expected to bring up Africa’s capacity from the current annual production rate of 40k tons to 497k tons by 2030. Africa has vast deposits of other minerals, with the DRC supplying 70% of global cobalt reserves alone.

Mining for cobalt is fraught with human rights abuses: Child labor in DRC’s mining sector has been dubbed equivalent to “ modern day slavery ” with children accounting for at least 40k of the 255k Congolese citizens mining for cobalt.

IN RELATED NEWS- China owes GDP growth to its clean energy sector:China’s clean energy sector played a pivotal role in its economic expansion last year, contributing 40% to the nation’s GDP, according to the Centre for Research on Energy and Clean Air. The sector contributed a record CNY 11.4 tn with substantial increases gained in the sectors for solar power, electric vehicles and batteries.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Honda + GM begin fuel cell production: Honda and General Motors (GM) has begun shipping fuel cell power systems from its Detroit factory and aims to deliver 2k fuel cell power units annually by the middle of this decade. Honda will use the fuel cells in its CR-V SUV due for release in March and GM will supply commercial truck maker Autocar and heavy mining and construction equipment maker Komatsu. (Reuters)
  • Ikea to cut emissions by 50% by 2030: Swedish furniture company Ikea has pledged a 50% reduction of greenhouse gas (GHG) emissions by 2030, up from its previously surpassed goal of 15%. By 2050, the company aims to cut 90% of GHG emissions from its value chain and has reported a climate footprint of 24.1 mn tons in 2023, constituting a 22% decrease from 2016. (Report, pdf)
  • Lanzajet opens world’s first ethanol-to-jet fuel plant: Sustainable fuels technology company Lanzajet has opened the first plant in the world to produce sustainable aviation fuel (SAF) using ethanol in Georgia. The USD 200 mn facility is backed by Suncor Energy Inc. and British Airways and is expected to produce 10 mn gallons of SAF per year. (Bloomberg)
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