Chemaf SA, a cobalt miner, has agreed to sell its assets in the Democratic Republic of Congo to Chinese miner Norin Mining to settle debts largely funded by its long-time partner, commodities trader Trafigura, the company announced on Thursday.
The financial details of the transaction were not disclosed. The new owner, a unit of the Chinese state-backed China North Industries Corp (Norinco), possesses the resources and technical expertise needed to complete the expansion of two cobalt and copper projects in Congo, Chemaf stated.
Chinese miners, most of which are state-backed, have become the largest investors in Congo as the world’s second-largest economy aggressively seeks copper and cobalt supplies for its rapidly expanding electric vehicle industry.
Congo is the world’s leading supplier of cobalt, and Norinco already owns the Comica and Lamikal copper and cobalt operations there.
Chemaf, a family-owned copper and cobalt miner, offered itself for sale last year due to a cash crunch that was stalling the expansion of its Etoile and Mutoshi projects in Congo, as cobalt prices had slumped.
In October, Chemaf announced it needed up to $300 million to complete the expansion to produce approximately 75,000 tons of copper and 20,000 tons of cobalt annually. The company had about $690 million in borrowings, with around $590 million arranged by Trafigura.
Trafigura declined to comment on the sale.
Norinco trades approximately 560,000 tons of copper products and 10,000 tons of cobalt annually, according to data on its website.
Chinese companies have been aggressively expanding into Africa in search of critical minerals for their EV manufacturers and now control an estimated 80% of the copper and cobalt industry in Congo.
In related developments, MMG, backed by state-owned China Minmetals Nonferrous Co, acquired Botswana’s Khoemacau copper mine last year for about $1.9 billion.
Additionally, Shanghai-listed mining services and contracting firm JCHX Mining recently took control of the Lubambe copper mine in Congo’s southern neighbor, Zambia.
