The Democratic Republic of Congo (DRC) has opposed the sale of Chemaf Resources’ copper and cobalt mines to China’s Norin Mining, citing violations of existing agreements, according to a Reuters report.
Norin Mining, a subsidiary of the state-backed China North Industries Corp (Norinco), had initiated the purchase as Chemaf faced financial struggles, impacting the expansion of its Etoile and Mutoshi projects amid declining cobalt prices.
DRC Mines Minister Kizito Pakabomba indicated that the transaction breached lease agreements between state-owned mining company Gecamines and Chemaf. Minutes from a recent council of ministers’ meeting, accessed by Reuters, confirmed the recommendation to block the sale.
The minutes stated: “Considering the flagrant violation of the clauses of the farm-out contract between Gecamines and Chemaf, it was recommended that the current transaction be halted following Gecamines’ opposition.”
The council of ministers subsequently adopted the mines ministry’s recommendation to stop the deal.
In response, a Chemaf spokesperson expressed the company’s intention to collaborate with Congolese authorities to move forward with the transaction.
In July 2024, Gecamines reaffirmed its claim to the mineral rights of Chemaf’s mines and voiced its opposition to the sale to Norinco.
Norinco already operates two copper and cobalt mines, Comica and Lamikal, in the DRC. Chemaf had planned to use the proceeds from the sale to address debts, meet creditor obligations, and bring in a new owner capable of financially and technically supporting the expansion of the Etoile mine and the development of the Mutoshi project.
Chemaf, a partner of commodities trader Trafigura, agreed to the sale of its DRC mining assets to Norinco in June 2024.
