China’s state-owned Sinohydro and China Railway have agreed to invest up to $7 billion towards infrastructure development in the Democratic Republic of Congo (DRC).
The investment falls under a revision of the existing Sicomines mining deal, whereby the Chinese partners would develop $3 billion worth of infrastructure across the country in exchange for a 68% stake in the Sicomines copper and cobalt mine joint venture – the operator of the Sicomies mine.
Also read: China to finance US$7B in DRC
Under the renegotiated deal, the Chinese investors have pledged an annual royalty payment of 1.2% and a $7 billion investment in infrastructure projects including roads and hospitals. Sinohydro and China Railway will maintain a 68% stake in the project, which is developed in partnership with DRC state-mining firm, Gecamines.