The Democratic Republic of the Congo (DRC), which accounts for roughly 70% of global cobalt supply and holds vast copper reserves, has signed a mining cooperation agreement with China, as competition for critical minerals between global powers has intensified.

The Congolese government said in a statement, reported by Reuters on March 27, that the deal covers geological data sharing, investment protection and the promotion of local processing of raw materials, reflecting Kinshasa’s push to capture more value from its resource base.

Chinese companies including CMOC Group Ltd (SSE:603993, HKEX:3993), Zijin Mining Group Co Ltd (SSE:601899, HKEX:2899) and Zhejiang Huayou Cobalt Co Ltd (SSE:603799) hold major stakes in key cobalt and copper assets in the DRC, while China is also the country’s largest bilateral creditor.

The agreement includes a monitoring mechanism to ensure projects comply with Congolese law and are implemented within a stable and transparent investment environment, according to the government statement published late on Thursday.

A flagship iron ore development in northeastern DRC, known as the MIFOR project, has been identified for priority support under the cooperation framework, although further details on its scale and timeline remain limited.

The deal comes as the United States steps up efforts to diversify critical minerals supply chains. Washington signed a strategic partnership with the DRC in December aimed at boosting Western investment, securing access to battery metals and supporting security efforts in the conflict-affected east.

“The U.S. will certainly take notice. It is clearly a riposte to Washington,” said Joshua Walker of New York University, in comments reported by Reuters.

Congolese exports are also set to benefit from expanded duty-free access to China from May 1 under an initiative covering 53 African countries.

The DRC is pursuing a balancing strategy, engaging both China and the United States to maximise investment inflows, expand domestic processing capacity and maintain strategic flexibility amid intensifying global competition for battery metals.