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Adding Value at the Source: A New Dawn for Mining in DRC

The Democratic Republic of the Congo (DRC) has a bad international reputation, with poverty, child labor, civil war, and Ebola among its problems. Few outside the country are aware that it is the world’s richest country in terms of natural resources, with undiscovered raw material deposits valued at more than $24 trillion, according to Michigan State University. Congo is home to the majority of the mineral ores used to make critical components for computer chips and electric vehicles, both of which are driving the future forward. Copper and gold are important components in the manufacture of monitors, printed circuit boards, and chips in a conventional computer.

Mineral resources are rich in certain places of the earth yet scarce (or non-existent) in others. As a result, the risk of deteriorating international relations is always present when it comes to the orderly and stable delivery of non-natural mineral resources. When a small number of deposit-rich countries supply mineral resources, the danger is magnified. While commodity trading on global markets helps to mitigate this, geopolitical conflicts and their potential to stymie international trade are an ever-present danger for stocks that rely on mineral resources that aren’t readily available locally.

In terms of poverty reduction, job creation, GDP contribution, state income generation, and export earnings, mining is extremely important for the country’s economic development. Mineral resources are a significant source of revenue and prosperity in several countries.
However, resource abundance does not always lead to long-term economic growth and development; it can instead have the reverse impact, which is known as the “resource curse.” Mineral-rich countries tend to have poorer institutions, spend less on education, and have higher levels of corruption.

In most nations and places where mining takes place, the mining industry offers very little direct employment. In order to encourage the formation of higher-value downstream processing jobs in the home market, several governments ban the export of unprocessed minerals in order to create additional jobs.

Raw material export limitations are also used to achieve other goals, such as generating income for the government, controlling the export of illegally mined products, improving environmental protection, or offsetting currency rate impacts generated by exports of numerous commodities. These are all reasonable policy objectives that should be established by the preferences of residents in each country.

The Essentials of the DRC

The Democratic Republic of the Congo possesses enormous untapped gold, cobalt, and high-grade copper reserves, but it also has major security problems, which are exacerbated by a lack of reliable infrastructure. Cobalt mining production in the DRC totaled 100,000 metric tons in 2019, accounting for 70% of global output. In 2019, the DRC was the world’s third largest producer of industrial diamonds, accounting for around 21% of worldwide output.

The country has some of the world’s best copper reserves, with some mines containing grades of more than 3%, much exceeding the global average of 0.6 to 0.8 percent. The DRC’s copper treasure, located on the copper belt in the country’s south, is attracting international mining companies drawn by high-grade and low-cost operations. The DRC produced 1.43 million tons of copper in 2019, up 19% from 2018. The DRC’s gold mining sector is seeing increasing interest from mining companies, thanks to cheaper operating costs than traditional gold producing countries like South Africa.

Increasing the Value of the Source

To assist in ending the plundering of the Democratic Republic of the Congo’s natural resources, taking into account the impact of such activities on war financing and their possible impact on the Democratic Republic of the Congo’s humanitarian and economic situation. The Congolese government has decided to prohibit the processing of the country’s minerals outside of Africa.

The Democratic Republic of Congo has taken a stand against the export of its raw mineral resources. None of the country’s raw minerals will ever be processed outside of Africa, according to the authorities. The DRC’s future can only be imagined through the growth opportunities provided by its mineral-rich soil and hydrocarbon potential, as mining continues to provide economic stability and agriculture drives local employment creation. The government’s commitment to attracting foreign investment, strengthening the business climate, and providing a long-term, profitable, and sustainable framework will fuel the development of these industries, as well as renewables.

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