Gecamines Bids for Chemaf Resources Amid Ongoing Controversy Over Chinese Sale
The Democratic Republic of Congo’s state-owned miner, Gecamines, has submitted a bid for Chemaf Resources Ltd.’s unit in the country.
This move comes months after Gecamines announced its intention to block a previous deal that would sell the copper and cobalt miner to a Chinese investor.
Chemaf, which is backed by Trafigura Group, spent nine months searching for a buyer before announcing a sale to China’s Norin Mining Ltd. in June.
Although Chemaf is still working to finalize that deal, it has faced opposition from the government and Gecamines, which holds a crucial permit that Chemaf leases for its flagship project.
According to a source familiar with the situation, Gecamines is interested in acquiring the company, but additional details about the offer have not been disclosed, as the information remains private.
The contest for Chemaf underscores the DRC’s efforts to exert greater control over its mining sector, where Chinese companies dominate production.
Chemaf’s Mutoshi project is poised to become one of the world’s largest cobalt mines, producing cobalt alongside copper for use in electric vehicle batteries.
If Gecamines were to acquire Chemaf’s unit, it would mark a significant shift for the state miner, which has typically acted as a minority partner in joint ventures. The Congolese government already holds a 5% stake in the company.
Neither Gecamines nor the DRC’s mines ministry responded to inquiries for comment.
In a statement, Chemaf declined to comment on Gecamines’ offer but emphasized its commitment to completing the proposed transaction with Norin Mining.
A spokesperson stated that this deal would help Chemaf address overdue loans and trade creditors while securing jobs for its local Congolese workforce.
Trafigura also chose not to comment on the situation.
Chemaf has faced challenges in completing projects like Mutoshi, primarily due to a slump in cobalt prices. The company has stated that Norin’s proposed takeover would enable it to finish stalled works at two assets and meet its creditor obligations.
Additionally, Chemaf holds numerous undeveloped copper and cobalt licenses in the DRC. The company previously reported approximately $690 million in outstanding debt as of September 2023.
