DRC-demand for resources

Question 1

main resource available in Katanga region

Answer 1

• 10% worlds copper reserves
• 34% worlds colbolt reserves
• rich depositis of zinc and colton

Question 2

main resource available in Kasai region

Answer 2

industrial diamonds close to Angolan boarder

Question 3

main resource available in congo river

Answer 3

major offshore oil deposits at the mouth of river. HEP potential

Question 4

what has hindered the development of the country’s mineral wealth?

Answer 4

• one of the poorest countries in the world
• life expectancy of 46 years
• poor government and civil war (1998-2003)
• smuggling and corruption in past. siphoned off most of the profits from mining=companies reluctant to invest

Question 5

why is the economy highly vulnerable to fluctuations in commodity prices on world markets?

Answer 5

• export earning are entirely dependent on primary products, especially copper and diamonds. 2006, copper made up 56% of the value of all the exports
• country has had little economic development

Question 6

Congolese people consume few resources

Answer 6

lots in poverty so domestic demand for raw materials is negligible

Question 7

benefits of foreign investment and why has it happened

Answer 7

• 2006/7 political situation stabilised
• attracted interest from Chinese, American and Canadian mining companies
• investment will bring much needed trade, economic growth, improvements in roads/railways and rising living standards
• some mining contracts linked to infrastructural projects and investment will be a partnership between the state owned mining company and foreign companies