DRC: Peace talks, Jakarta and Trump
Tinker, tailor, soldier...cobalt?
Republic of Congo’s (DRC) Félix Tshisekedi called for a truce between the Congolese army and the Rwanda-backed M23 rebel group. Rwanda, however, still denies any affiliation with M23 which has captured large, mineral rich, portions of the DRC since January.
The meeting came as international pressure on Rwanda is increasing and Congo struggles to contain the insurgency. Although the agreement appears to be a positive development, it is unclear whether M23 will abide by the cease-fire.
After all, the militant group has a history of violating cease-fires in the past. Congo, which produces 73% of the world’s cobalt supply, has seen three decades of ethnic conflicts which killed millions.
The Indonesian Connection
Throughout the military conflict, the Democratic Republic of the Congo also battles to strengthen its grip on the global mineral market.
The DRC instituted a four-month export ban on Cobalt in February, following an explosive supply surge and a historic price dop. The excessive supply is the result of expanding mining operations from Chinese companies in the DRC alongside a drop in electric vehicle sales.
Yesterday, Kinshasa announced it will now impose export quotas on its mining sector to control future pricing.
Additionally, the Congolese Prime Minister shared the country has plans to collaborate closely with Indonesia. The Southeast Asian country is another key exporter of Cobalt, which would allow the two nations to better regulate the supply and pricing of cobalt on the global market.
Trump
In another desperate attempt to rid itself of the M23 rebels, the DRC has reached out to the United States for help. Aiming to establish a security deal in exchange for mineral rights, Kinshasa has proposed a joint U.S.-DRC mineral stockpile and American access to DRC mines in exchange for military training, equipment and a U.S. military presence in the central African country.
Washington DC has signaled it is open to mineral partnerships and President Trump has sent Rep. Ronny Jackson to meet with Congo’s Tshisekedi for further talks. Although, the Trump administration might be way of placing boots on the ground in war-torn Congo, a mineral deal could a offer a strategic opportunity to at least play catch up with the Chinese who operate a significant amount of mines in the DRC.