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Democratic Republic of Congo’s state-owned miner has submitted a bid for Chemaf Resources Ltd.’s unit in the country, months after saying it intended to block a previous deal to sell the copper and cobalt miner to a Chinese investor.
Chemaf — backed by Trafigura Group — spent nine months looking for a buyer before announcing the sale in June to China’s Norin Mining Ltd. Chemaf says it is still working to close that deal, but it has drawn opposition from the government and state miner Gecamines, which owns a key permit that Chemaf leases for its flagship project.
Now, Gecamines is interested in buying the company, according to a person familiar with the matter who declined to be identified because the information isn’t public. They didn’t provide any additional details beyond saying that an offer has been sent to Chemaf.
The battle over Chemaf highlights the efforts of Congo — now the world’s no. 2 copper producer — to assert more control over its mining sector, where China dominates output. Chemaf’s Mutoshi project is set to become one of the world’s largest mines for cobalt, which is extracted alongside copper and used in electric vehicle batteries.
If Gecamines were to acquire the Chemaf unit, it would be a departure for the state miner that’s typically been a minority partner in joint ventures. Congo’s government already owns 5% of the company.
The state firm and Congo’s mines ministry didn’t respond to messages seeking comment.
Chemaf declined to comment in response to questions about Gecamines’ offer. The company “remains committed to completing the proposed transaction with Norin Mining which will enable it to address its overdue loans and trade creditors while securing employment for its local Congolese workforce,” a spokesperson said by email.
Trafigura also declined to comment.
Chemaf has struggled to finish projects including Mutoshi following a slump in cobalt prices. It has said Norin’s proposed takeover would allow it to complete stalled works at two assets and fulfill obligations to creditors.
The company also owns dozens of undeveloped copper and cobalt licenses in Congo. Chemaf previously said it had about $690 million of debt outstanding as of September 2023.
(By Michael J. Kavanagh and William Clowes)
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