The Democratic Republic of Congo’s (DRC) state-owned mining company has submitted a bid to acquire Chemaf Resources’ local unit, after previously signaling opposition to a planned sale of the copper and cobalt miner to a Chinese investor.
Chemaf, backed by Trafigura Group, spent nine months searching for a buyer before agreeing to sell to China’s Norin Mining in June. Although Chemaf is working to finalize that deal, it has faced pushback from the DRC government and state miner Gecamines, which holds a crucial permit leased to Chemaf for its flagship project.
Now, Gecamines has expressed interest in purchasing the company, according to a source familiar with the situation who asked not to be named because the information is not public. No further details were provided, except confirmation that an offer has been made to Chemaf.
This development underscores Congo’s broader efforts to exert greater control over its mining industry, where Chinese companies dominate production. Chemaf’s Mutoshi project is set to become one of the world’s largest cobalt mines, with cobalt being a key material in electric vehicle batteries, often mined alongside copper.
If Gecamines acquires Chemaf’s local unit, it would mark a shift from its typical role as a minority partner in joint ventures. The DRC government already holds a 5% stake in Chemaf.
Neither Gecamines nor the country’s Ministry of Mines responded to requests for comment. Chemaf also declined to comment on the bid but reiterated its commitment to completing the deal with Norin Mining, which would help address its outstanding debts and preserve jobs for its Congolese workforce, according to a company spokesperson.
Trafigura also declined to comment.
Chemaf has faced challenges completing projects like Mutoshi due to falling cobalt prices. The company has said Norin’s takeover would allow it to resume work on stalled projects and meet its financial obligations. Chemaf also holds numerous undeveloped copper and cobalt licenses in Congo and reported around $690 million in debt as of September 2023.
