Congo’s state-owned miner, Gecamines, has submitted a bid for the cobalt and copper assets of DRC cobalt miner Chemaf Resources (CRL), reported Bloomberg News.
This move comes after the DRC government opposed Chemaf Resources’s sale of its copper and cobalt mines to China’s Norin Mining, arguing that it violates the lease agreements held by state miner Gecamines with Chemaf.
Norin Mining is a subsidiary of the state-backed China North Industries (Norinco).
In June 2024, Chemaf, a partner of commodities trader Trafigura, agreed to sell its mining assets in the DRC to Norinco.
Chemaf, which has been seeking a buyer for nine months, is still working to close the deal with Norin despite facing opposition from the Congolese Government and Gecamines.
According to a person familiar with the matter, Gecamines is now looking to acquire Chemaf, although further details remain undisclosed.
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The Congolese Government holds a 5% stake in Chemaf.
Chemaf initated the sale of its assets as its faced financial difficulties, hindering the expansion of its Etoile and Mutoshi projects amidst falling cobalt prices.
The company believes that the proposed acquisition by Norin would enable the completion of suspended projects and meet creditor obligations.
A spokesperson was quoted by the news agency in an email that 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”.
Chemaf also holds other undeveloped copper and cobalt licences in Congo. It reported approximately $690m (Dh2.53bn) in debt as of September 2023.
