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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. has made some progress in its efforts to wrest Congo's strategic mineral resources from China. However, conflict, contested licenses, and compliance requirements are still slowing Washington's advancement into a dominant region.

The U.S. is focusing on the Democratic Republic of Congo because it has the largest cobalt reserves in the world and rich 'copper' and 'lithium' reserves. This country's role is crucial to cutting the West's dependence on China when it comes to rare minerals.

Kinshasa handed Washington, last month, a list of 44 projects spanning copper and cobalt to 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 mediated between Congo and Rwanda. Kinshasa accused Rwanda of supporting M23 fighters who are fighting Congolese forces in its eastern part.

Sources, including Congolese mining and government officials, say that several of the assets short-listed 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 claimed that Kinshasa deliberately delays new deals in order to "push Washington into increasing pressure on M23" before any further action is taken. 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 rhythm. There is a time for offers and a time for negotiations." Rwanda, which denies supporting M23, didn't immediately respond to comments.

The U.S. State Department said that the U.S. is "deeply worried" about the violence in eastern Congo. It has urged regional partners to strengthen the ceasefire and urged Rwanda to stop supporting M23 and withdraw according to the December peace agreement.

The Department of State said Washington hopes for rapid progress on important deals. These include a proposal by Glencore to sell cobalt and copper?assets to a U.S. backed consortium called Orion, Virtus Minerals bid to acquire Congo-focused Chemaf and the extension to the Lobito Corridor rail line.

Joshua Walker, NYU's Congo Research Group, says that Kinshasa is on the shortlist for the Rubaya Mine, which provides about 15% of global coltan, and lies under M23/AFC's control. This shows Congo wants "stronger U.S. actions on M23".

He said that investment is unlikely as long as the group controls territory.

Some mines have already seen the influence of the U.S. 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 gridlock in permitting was a structural barrier to new U.S. investments.

KoBold, a U.S.-backed company, is attempting to resolve a dispute between Australia's AVZ and China's Zijin, which is also located in Manono. Both companies are preparing shipments for June.

Political disputes and permitting history deter Western lenders from lending on high-grade copper and cobalt assets. 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 says that even for "easy wins", such as tailings reprocessing or cobalt refineries, the success depends on security and governance reforms that Washington alone can deliver.

Geraud Christian Neema is an analyst who specializes in the "geopolitics" of natural resources.

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

WESTERN PACE VS. CHINESE PROCEDURE

Officials in Congo acknowledge that they would like 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 U.S. or other Western companies, such as proving that their title chains are clean and documenting any community impact risks.

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

The contrast is evident in the Congo's mining industry - Chinese firms can absorb uncertainty while Western firms cannot, allowing Beijing linked companies to progress projects as U.S. Companies remain 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)