According to Bloomberg, the DRC's state-owned mining company Gécamines has proposed a complex plan to acquire the troubled copper-cobalt producer Chemaf SA, aiming to lead its restructuring and ensure that its key mineral output is prioritized for the US market, making the deal the latest focal point in the US-China competition for critical minerals in the DRC.
Previously, Chemaf sought a sale due to plummeting cobalt prices and debts of approximately $900 million. Its flagship project, Mutoshi, is under construction to become one of the world's largest cobalt mines and holds extensive undeveloped licenses, giving it significant strategic value. In March, a proposed sale to a Chinese company fell through after failing to gain approval from the DRC government.
Under Gécamines' proposal, the company plans to acquire the debt-laden Chemaf for no more than $1 million, then introduce new controlling investors. As the lead party in the deal, Gécamines will retain a 5% "free carried interest" and seek to acquire an additional stake of at least 20%, while committing to sell the majority of Chemaf's future production to US buyers. The plan aligns with the recent mineral cooperation agreement signed between the DRC and the US, aiming to provide US investors with priority access to critical minerals such as cobalt and copper.
However, the outlook for the deal remains uncertain. It is unclear whether all parties involved—including Chemaf's owners, major creditors (such as Trafigura Group, which provided a $600 million loan), and the DRC government—will support the proposal. Meanwhile, at least five companies with diverse backgrounds have joined the bidding, including a consortium of Virtus Minerals (run by former US military and intelligence personnel) and Orion Resource Partners, US-based United Critical Minerals, a subsidiary of India's Jindal Steel, Austria-controlled Global Critical Resources, and Buenassa Sarl, which aims to build the DRC's first local refinery. Many of these bidders have explicitly emphasized arrangements to cooperate with the US government or prioritize supply to the US market in their proposals.
Currently, all relevant parties have declined to comment, and the outcome of this transaction, which concerns control over critical minerals, remains to be seen.
