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Sources say that the US is still struggling to derisk Congo's "war zone minerals" even after the pact.

Diplomats and industry officials say that the U.S. is making progress in its efforts to wrest Congo's strategic mineral resources from China. However, conflict, contested licenses and compliance requirements are still slowing Washington down as it advances into a dominant region. The U.S. is relying on the Democratic Republic of Congo to reduce the West's dependence on China for rare minerals. It has the largest cobalt reserves in the world, as well as rich copper and lithium deposits. Kinshasa handed Washington, after the U.S. signed a mineral pact with Congo in December, a list of 44 projects spanning copper and cobalt as well as lithium, tin and gold.

The U.S. State Department stated that the U.S.-Congo Partnership is intended to unlock investment and support implementation of an agreement Washington brokered between Congo, Rwanda and Kinshasa, which Kinshasa accuses of supporting M23 Rebels fighting Congolese soldiers in its eastern part.

Sources, including Congolese mining and government officials, say that several of the assets shortlisted are located in politically volatile zones or have permit disputes, which makes it unlikely for mining deals to be made quickly. The sources asked to remain anonymous because the discussions were sensitive.

Source: CONGO slowing down deals

A U.S. diplomat stated that Kinshasa deliberately delays new deals in order to force Washington to increase its pressure on M23. Could not independently verify this claim.

The Congolese Government did not respond immediately to requests for comments. A senior government official called the allegations "speculation" in background.

The official explained that "the agreement has its own pace: a time for receiving offers and a time for negotiations." Rwanda, which denies supporting M23, didn't immediately respond to comments. U.S. State Department said?the U.S. is "deeply worried" about violence in eastern Congo. It urged regional partners to strengthen the ceasefire and urged Rwanda to stop supporting M23 and withdraw according to December's peace agreement. Washington wants to see rapid progress in key deals. These include a proposal by Glencore to sell copper and coal assets to the U.S. backed Orion consortium; Virtus Minerals bid to acquire Congo-focused Chemaf; and the extension to the Lobito Corridor rail line. Kinshasa being included on the shortlist for the Rubaya mine, which provides about 15% of global colltan, and is under the control of?M23/AFC, indicates that Congo wants more U.S. actions against M23. This was stated by Joshua Walker, NYU's Congo Research Group.

He said that investment is unlikely as long as the group controls territory. Some mines have already seen the influence of the United States on security. Alphamin Resources restarted the Bisie tin mining operation only after U.S. diplomats helped to ease fighting around the mine. However, it warns of renewed clashes which could threaten operations and access.

PERMITTING GRIDLOCKS

Michael Bahati is the chief analyst of Ascendance Strategies. He said that Congo's permitting gridlock was a structural barrier to new U.S. investments. However, some assets listed by Kinshasa are also mired in disputes and incomplete ownership and rights records. There are also slow transparency reports. U.S.-backed KoBold, which controls a global-class resource of lithium in Manono (Australia), is attempting to resolve a dispute with AVZ. Meanwhile, China's Zijin, located in the same 'area', is preparing to ship in June. The high-grade copper and cobalt assets of Chemaf, Gecamines, and other companies are hampered by political disputes and a history of permitting that discourages Western lenders. The sale of Chemaf to U.S.-backed Virtus is slowing down after owners indicated that the $30 million offer does not cover heavy debts.

Kinshasa has signaled success, even for "easy wins", such as tailings refining or proposed cobalt refineries, is dependent on the governance reforms, and security guarantees, that only Washington can deliver.

Geraud Christian Neema is an analyst of the geopolitics and natural resources in Africa.

Washington continues to focus on assets that are "ready-to produce". He said that a longer-term change would require U.S. businesses to be willing to take on Congo-level risks and wait for years to see returns.

WESTERN PROCEDURE Vs. CHINESE PACE

Officials in Congo acknowledge that they want American players to move more quickly, but they say they can't circumvent their compliance obligations.

Chinese firms are not bound to the same obligations as Western companies. These include anti-bribery tests, proof of clean title chains, and documentation of community impact risks.

At Manono the Zijin head start in building roads, power, and port links has already shaped the project. KoBold Congo's Congo chief said that the company would look to share the infrastructure once ownership disputes are resolved. This pace reflects the compliance burden that U.S.-backed companies?face.

It is evident that the Congo's mining industry has a different dynamic - Chinese companies can handle uncertainty better than Western firms, which allows Beijing-linked companies advance projects faster while U.S.-based companies are stuck in due diligence loops.

NYU's Walker stated that Kinshasa is currently succeeding in bringing Washington further into its orbit of critical minerals, as it believes the attention given by the U.S. will result in security and political benefits.

It is still unclear how the engagement will end up looking.

The Chinese have already seized over 70% of Congo’s rare minerals, including copper and cobalt. Washington has yet to show any signs that it can loosen Beijing's hold. Maxwell Akalaare Adombila, reporting and writing from Dakar and Veronica Brown, and Jan Harvey, editing.

(source: Reuters)