The United States is considering providing as much as US$1 billion to overhaul a major rail line in the Democratic Republic of Congo (DRC), a move aimed at strengthening critical mineral supply routes from the resource-rich central African nation.
The U.S. International Development Finance Corp. (DFC) said Friday it has signed a letter of intent with Portuguese engineering group Mota Engil Engenharia e Construção África to rehabilitate and operate the Dilolo–Sakania rail line. Once upgraded, the line would link directly to Angola’s Lobito Atlantic Railway, forming the core of the so-called Lobito Corridor—a strategic transport route designed to handle rising copper, cobalt and other mineral exports from the DRC.
The project could seek up to US$1 billion in DFC financing, pending a full review by the agency.
Copper–cobalt venture
In a separate announcement, the DFC said it has also signed a letter of intent to take an equity stake in a new copper and cobalt venture jointly owned by DRC state miner Gécamines and Swiss commodity trader Mercuria Energy Trading. The partnership is expected to boost the marketing and sale of critical minerals essential to U.S. supply chains for electric vehicles, aerospace and other advanced technologies.
“These projects will help secure vital supply chains, expand private-sector opportunity, and strengthen America’s global competitiveness while supporting peace and prosperity in Central Africa,” DFC CEO Ben Black said. He emphasized that the U.S. aims to work with partners committed to transparency, fair competition and accountability.
Strategic pact with Washington
The financing proposals follow a new strategic agreement signed Thursday between the U.S. and the DRC to enhance cooperation on security and defense while improving U.S. access to Congolese critical minerals.
Under the pact, the DRC committed to significantly increase the volume of state-controlled copper, zinc concentrate and cobalt exported via the U.S.-supported Lobito–Sakania Corridor. Within five years, half of state-owned copper, 90% of zinc concentrate and 30% of cobalt must move through the route, according to the agreement.
The accord also outlines a framework for U.S. investment in DRC mineral assets, establishes a joint steering committee, and identifies a strategic list of critical mineral projects. A key goal is to reshape supply chains and bring more formalization to artisanal mining sectors long associated with informal economies and armed groups.
The DRC is among the world’s most resource-rich nations, holding vast deposits of copper, lithium and other battery metals. It is the leading global supplier of cobalt, a mineral central to electric-vehicle battery production.
Offtake commitments and corridor expansion
Another part of the agreement grants U.S. buyers a right of first offer on critical minerals exported by DRC state-owned companies, provided the terms remain commercially competitive and ensure the materials are ultimately consumed in the United States. Where appropriate, these exports should use the Lobito–Sakania rail route.
The corridor stretches from Angola’s Atlantic port of Lobito eastward for about 1,300 km to the border, then continues 450 km inside the DRC to Kolwezi via the national rail network. It passes near Ivanhoe Mines’ Kamoa-Kakula complex and through its Western Foreland exploration zone, underscoring its strategic importance to global miners.
According to the agreement, the U.S. “reaffirms its intention to make the Sakania–Lobito Corridor project a success” that drives economic growth in the DRC while opening new market opportunities for U.S. firms.
Hydropower ambitions
The two nations also vowed to accelerate development of the long-discussed Grand Inga hydropower complex on the Congo River, a megaproject that could eventually supply electricity across much of Africa. A new joint governance committee will seek financing from export credit agencies, multilateral lenders and development institutions.
Within a year, the DRC will also establish a preferential regulatory, fiscal and tax framework for U.S. investors. In exchange, Washington will provide technical assistance in areas such as regulatory reform, mineral processing and geological data assessment to support new exploration and development.
Both countries agreed to explore ways to formalize and standardize artisanal and small-scale mining. The DRC will consider partnerships with U.S. entities to ensure that critical mineral sourcing meets regional and international standards.
