US Blocks Sale of Congolese Copper Mine to Chinese Defense Firm
The US has intervened in the sale of a Congolese copper mine to a Chinese arms manufacturer to prevent Beijing from gaining further control over critical minerals, according to sources familiar with the matter.
US officials urged the Democratic Republic of Congo’s state-owned miner, Gécamines, to review the recent sale of Trafigura-backed Chemaf Resources to Norin Mining, a subsidiary of China’s state-owned defense company Norinco, these sources said.
This action is part of Washington’s broader effort to secure access to essential metals for US-friendly companies amid increasing competition between the West and China for control of minerals crucial for clean energy infrastructure. The US State Department did not respond to requests for comment.
Chemaf leases the permit for its flagship Mutoshi project from Gécamines. The state-owned miner claimed it should have been informed of the deal beforehand, asserting that any change in “direct or indirect” control required its approval.
In a statement on Monday, Gécamines announced that its board had vetoed the deal after learning about it through the media.
Chemaf stated that it had notified Gécamines prior to the sale announcement and had not received any correspondence from the state miner. The company added that it had already secured approval from Congo’s Minister of Mines.
“The company conducted a broad international sales process and received significant interest from several US groups. However, none of this US interest resulted in an executable transaction,” Chemaf said in a statement to the Financial Times.
Gécamines has a history of intervening in the sale of mining assets to block transactions, renegotiate its rights, or extract payments.
New Chair Guy Robert Lukama, appointed in 2023, has a mandate to turn around the struggling entity and has indicated plans to review unfavorable contracts and joint ventures.
An anonymous source close to Gécamines stated that the company was acting to protect its contractual rights and assess the best options for project development.
Under Lukama’s leadership, Gécamines aims to market more of the ore produced on its concessions and to increase its own mining activities.
Norinco describes itself on its website as “the main supplier of Chinese Army weaponry and equipment” and a “leader of international cooperation in China’s defense industry.”
It already operates two other copper-cobalt mines in southeastern Congo. Norinco did not respond to requests for comment.
The assets Norinco seeks to acquire from Chemaf include two producing mines, Mutoshi and Etoile, as well as several other mining licenses that could contain further resources.
Cobalt and copper are essential metals for military equipment, used in superalloys for fighter jets, wiring, and munitions.
A 2020 UN report found that Norinco was among Chinese companies that had supplied arms to Congo at least eight times between 2015 and 2019. The US Treasury has prohibited American companies or individuals from owning shares in Norinco since 2020.
Trafigura arranged a $600 million loan to Chemaf in 2022 in exchange for rights to market its cobalt hydroxide and remains the company’s largest creditor.
The facility was intended to help Chemaf complete the construction of a fully mechanized mine at Mutoshi and expand a processing plant at Etoile. However, rising costs and falling cobalt prices have stalled the company’s plans.
Under the terms of the Norinco deal, Trafigura would be repaid in full.
Trafigura approached the US government and other parties for assistance in finding buyers when the sales process was first announced last year, according to three sources familiar with the matter. Trafigura declined to comment.
Washington attempted to introduce potential buyers, including KoBold Metals. However, the start-up backed by Bill Gates’ venture fund withdrew after considering a bid. KoBold Metals declined to comment.
