KoBold Metals, the mining start-up backed by Bill Gates and Jeff Bezos, is expanding its presence in the Democratic Republic of Congo, with the intention of investing billions to exploit the DRC’s resources, the Financial Times reported.
Benjamin Katabuka, the new head of KoBold Metals in Congo, told the British newspaper that KoBold was looking to “think big” in the DRC, currently the world’s largest producer of cobalt and the top copper producer on the continent.
He added that the company plans to apply for licenses to explore these two critical minerals as well as lithium, of which the DRC holds significant deposits but has not yet fully exploited.
These investments could potentially reach “billions,” Katabuka said, as quoted in the Financial Times article published on Saturday evening.
The report comes amid increased trade tensions between the United States and China, which has seen the latter ease its dominant position in the critical minerals supply chain by imposing export restrictions on rare earths.
In Congo, most of the largest mines are operated by Chinese groups, while American companies have had a limited presence since Freeport-McMoRan sold its stake in the Tenke Fungurume copper mine to the Chinese company CMOC in 2016.
Katabuka stated that the Congolese government was “interested in some Western investors coming into the country” to balance China’s presence in the country.
KoBold’s advance in Congo comes as the DRC negotiates a potential mining agreement with the United States. The President of the DRC, Félix Tshisekedi, has proposed a “minerals for security” deal to Washington in order to end the ongoing armed conflict with the M23 rebels supported by Rwanda.
Regarding jurisdictional risk, Katabuka from the DRC acknowledged that it was “difficult” to do business in the country but added that KoBold has ensured that the company will demand “additional standards” for its operations.
KoBold, which specializes in using artificial intelligence to identify untapped critical mineral deposits, has around sixty active projects across four continents. In Africa, its primary focus is Zambia, where it made the country’s largest copper discovery in a century last year. Establishing a presence in Congo would allow the company to be present in Africa’s two largest copper producers. Earlier this year, it also established a presence in Namibia, focusing on its lithium and nickel deposits.
To support its exploration of critical minerals, KoBold raised $537 million in its latest funding round from investors such as Breakthrough Energy Ventures (Bridge’s), Earthshot Ventures, Equinor, July Fund, Mitsubishi Corporation, and Standard Investments. To date, the California-based company has raised $1 billion.
With FT
