EPTSummary: Congo owes IMF 10 billion, IMF offers to lower amount if Congo screws China by cutting in half the expected amount of copper and cobalt China can mine from Congo, and also by encouraging DRC to renegotiate the IRR on the Chinese loan that's financing the mining project (read: bankrupt the Chinese firm that dared to make the loan against the omniscient and omnipotent IMF).
Fast forward two months:
http://af.reuters.com/article/investingNews/idAFJOE57H0MX20090818
Basically the IMF won this round, and got the DRC to remove its mining guarantees. But before you think this has something to do with a nefarious plot by IMF bankers to rule the world, a more mundane reason may be at work.
Freeport McMoran (a large mining firm) operates a massive concession in the DRC, and they felt squeezed by the Chinese deal in that it was possible that some of their concessions could be given to China to cover the 9 billion Chinese loan as global copper prices fell. Source (written by disgruntled ex-employees--FCX is the ticker symbol):
http://www.fcxsucks.com/drc.html
The irony is, of course, that FCX sells shitloads of copper to China every month, so it's not like the West is really gaining anything here (other than control, but given how unstable Congo is and how easily mines can be nationalized, the control is probably nominal).
So in this case, China gets screwed in Africa by the IMF, which is acting as a safeguard to
Of course, you won't find any of that in the Voice of America article, where the headline is "Chinese Mineral Deal Blocking Congo's IMF Debt Relief":
http://www.voanews.com/english/2009-05-26-voa26.cfm
And it seems like Fox News, CNBC, et al will take their talking points from VoA on this issue.
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Longer term though, I'm optimistic. This is kind of like the hazings of a pledge in the global frat house. I think that as long as China's leaders play it cool, tough, and committed to a clear idea of exactly how to best leverage themselves in the global system, things should be fine. Even though the exhortations of "responsible stakeholder" ring hollow today, hopefully, by the time of grandchildren, things will be better. Hopefully.
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