□ At the reception hall of the presidential palace of the DR Congo on July 7, Korea Eximbank (www.koreaeximbank.go.kr, Chairman Yong Hwan Kim) signed the Cooperation Agreement on Linked Project for the SOC Construction and Resource Development with the Democratic Republic of the Congo. Under the agreement, Korea would construct a network of water supply pipelines in the capital of Kinshasa with the condition that Korea would acquire development rights to Musoshi cooper mine.

○ The agreement, which encompasses basic obligations and principles of cooperation for successful promotion of linked projects, was signed by Minister of Finance of DR Congo Matata Ponyo Mapon, Minister of Energy Gilbert Tshiongo Tumba, Minister of Mined and Mining Development Kabwelulu Martin, POSCO CEO Joon Yang Jung as a representative of the Resource Development Joint Venture consisting of Korean companies, and Korea Eximbank Chairman Yong Hwan Kim who will oversee provision of financial support.

□ The resource development and SOC linked project model fully utilizes Korea’s core strengths in SOC construction technologies to secure the abundant natural resources of Africa.

○ The model was strategically developed to increase Korea’s competitiveness against countries which have already advanced into the promising market of Africa. This agreement is the first successful application of the model.

○ Korea Eximbank played a key role in the agreement. The bank developed and presented a business model which satisfied the needs of the government of the DR Congo and the Resource Development Joint Venture. In addition, the bank actively expressed financial support in the form of a USD 500 million comprehensive financing package linking EDCF and natural resource financing.

* Economic Development Cooperation Fund (EDCF): established by the Korean government in 1987, EDCF supports industrial development and economic stabilization in developing countries through long-term, low-interest grants and promotes economic exchange with Korea. Operation and management of EDCF was entrusted to Korea Eximbank. As of late June 2011, a total of KRW 6,807.3 billion in EDCF funding has been provided to 253 projects in 46 countries. This project will represent the first financial support for the DR Congo.

□ Minister of Energy of the DR Congo Gilbert Tshiongo Tumba stated, “The DR Congo will strengthen cooperation with Korea through the linked development model to strengthen infrastructure such as waterworks, roadways, and harbors. Inadequate infrastructure is the biggest obstacle to our economic development.”

□ Chairman Kim stated, “This agreement is significant not only in the sense that we helped secure strategic mineral resources for Korea but also in the sense that we were able to establish a mutually beneficial medium- to long-term cooperation model with the DR Congo, a country with the largest mineral resources in the world. Korea Eximbank will continue to support the efforts of Korean companies for expansion into overseas developing countries by providing creative development cooperation models and financing solutions.”

** Six major strategic minerals for Korea: copper, bituminous coal, uranium, zinc, nickel, and iron ore.

*** The DR Congo, the world’s richest country in terms of mineral resources, accounts for 10% of the world’s copper reserves and 50% of the world’s cobalt reserves. In addition, the DR Congo has other valuable natural resources such as uranium, plumbum, zinc, gold, tungsten, manganese, and in particular, coltan, the rare earth mineral used in high-tech export items such as cell phones.