US Firm Virtus Minerals to Acquire Chemaf as Washington Strengthens Critical Minerals Strategy in the DRC
US-Backed Firm Virtus Minerals Moves to Acquire Congolese Copper and Cobalt Producer Chemaf
A US-based company led by former military and intelligence officials has agreed to acquire Chemaf SA, a financially distressed Congolese copper and cobalt producer that has become central to Washington’s strategy to secure critical mineral supply chains.
Virtus Minerals Inc. has reached an agreement to purchase Chemaf for an undisclosed amount and to assume all of the company’s liabilities, including significant debt.
The transaction is expected to be accompanied by capital investments totaling up to US$750 million, financed through a combination of debt and equity.
The announcement was made in Washington during an event attended by President Félix-Antoine Tshisekedi.
Chemaf has faced financial difficulties since embarking on the development of what is expected to be one of the world’s largest cobalt mines.
The company has been seeking a buyer since 2023, after abandoning a planned sale to a Chinese state-owned enterprise in 2025 when the Congolese authorities declined to grant regulatory approvals.
The prolonged sale process has highlighted intensifying competition between the United States and China over access to the Democratic Republic of Congo’s vast mineral resources.
In this context, Washington and Kinshasa recently formalized a strategic partnership aimed at facilitating greater participation by US investors in the Congolese mining sector, which is currently dominated by Chinese operators in copper and cobalt production.
Virtus is pursuing the acquisition in partnership with Orion CMC, an investment platform led by Orion Resources Partners and supported by the US International Development Finance Corporation.
The Chemaf transaction is widely seen as one of the cornerstone projects underpinning the broader US–DRC critical minerals partnership, alongside other planned investments in mining assets and regional transport infrastructure linking the Copperbelt to the Atlantic coast.
According to sources familiar with the deal, Virtus has agreed to pay approximately US$30 million for Chemaf’s shares and has secured the support of trustees representing nearly all of the company’s shareholders.
The acquisition also includes an understanding with commodities trader Trafigura on the restructuring and settlement of Chemaf’s outstanding debt, which originated from financing arrangements to develop the Mutoshi and Etoile mining projects.
India’s Lloyds Metals and Energy Ltd. will serve as the operational partner in the project, with the joint venture planning an initial equity investment of around US$200 million.
Virtus has also engaged international financial and legal advisers to support the transaction and has signaled strong backing from the US government.
The proposed takeover remains subject to approval by the Congolese government and state-owned miner Gécamines, which holds a strategic role in one of Chemaf’s key mining licenses and had previously considered submitting its own bid.
Several other US, Congolese and Indian companies are also reported to have expressed interest in Chemaf, which controls a portfolio of largely undeveloped mining permits.
SOURCE:mining.com
