China North Industries Corp (Norinco) has revised its $1.4 billion bid to acquire copper and cobalt assets from Chemaf SA by offering the Democratic Republic of the Congo (DRC) a larger stake to ease government concerns, sources familiar with the matter told Reuters.
Norinco’s offer, initially submitted in June 2023, stalled after Congo’s state miner, Gécamines, made its own unsolicited bid for the assets.
The situation has been further complicated by U.S. efforts to curb China’s dominance in the mineral-rich Copperbelt.
To push the deal forward, Norinco has proposed increasing Congo’s stake in Chemaf’s Mutoshi and Étoile mines from 5% to up to 15% at no additional cost, according to sources who requested anonymity.
Chemaf, a long-time partner of global commodities trader Trafigura, presented the revised offer to the Congolese government last month, and discussions are ongoing.
Norinco also offered Congo a share of the metals produced by Chemaf, which the government could sell—a deal structure similar to one Gécamines has with China’s CMOC.
The Chinese company, which already owns the Comica and Lamikal mines in the DRC, has pledged $500 million to complete the expansion of the Mutoshi and Étoile projects, in addition to offering about $900 million to settle debts and acquire the assets.
However, Gécamines, which holds the lease to the Mutoshi mine, has refused to approve Norinco’s bid. Chairman Robert Lukama told Reuters in November that Gécamines’ own $1 billion bid for the assets was viable, and he would not back a deal with Norinco.
Chemaf has accused Gécamines of obstructing the sale while failing to submit a competitive bid. In a letter to the state miner, seen by Reuters, Chemaf stressed that any buyer must pay off roughly $920 million in debt and commit $500 million to mine development, conditions that Norinco has agreed to meet.
Chemaf’s creditors, including Trafigura, First Bank, and Trade & Development Bank, have not been repaid in 18 months and are pushing for the sale’s completion.
According to the letter, Norinco’s offer would immediately free up around $920 million for lenders, trade creditors, and other stakeholders.
Gécamines has yet to demonstrate that it has the necessary funds to acquire and develop the assets, Chemaf stated.
Congo’s Mines Minister Kizito Pakabomba did not respond to requests for comment but previously told Reuters in early February that the government was working to finalize the acquisition.
