The Democratic Republic of Congo has approved the sale of Chemaf SA, a copper and cobalt producer, to U.S.-based Virtus Minerals, according to sources cited by Bankable on March 17.
As seen on Ecofin Agency, the authorization was issued by Mines Minister Louis Watum, in accordance with Congolese regulations that require state approval for any ownership change involving companies holding mining permits.
Virtus Minerals, established by former U.S. security officials, reached an agreement in February with trustees based in the Isle of Man who represent roughly 95% of Chemaf’s shareholding.
Under the terms of the deal, Virtus has committed to pay $30 million to acquire the company and plans to invest $750 million to complete ongoing mining projects.
It has also indicated it will assume Chemaf’s outstanding debt, which is estimated to exceed $900 million.
Commodity trading firm Trafigura, which arranged a $600 million loan for Chemaf in 2022, is among the company’s key creditors. Chemaf was originally founded by businessman Shiraz Virji.
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The approval comes less than four months after the DRC and the United States signed a strategic partnership focused on critical minerals.
The agreement includes provisions granting U.S. investors preferential access to selected priority mining projects in the country.
For Washington, the transaction aligns with efforts to secure supply chains for essential minerals such as copper and cobalt while reducing reliance on China.
For Kinshasa, strengthening ties with the United States is also tied to broader security concerns, including ongoing instability in the eastern regions of the country.
Chemaf was put up for sale in September 2023 after encountering financial strain linked to the expansion of its Etoile mine in Haut-Katanga and the development of the Mutoshi deposit in Lualaba, challenges that were compounded by falling cobalt prices.
The asset drew interest from multiple bidders. In June 2024, China’s Norin Mining announced a deal to acquire Chemaf, but the transaction was blocked by state-owned Gécamines, which had proposed acquiring the company and reselling it while retaining up to a 25% stake.
Private Congolese firm Buenassa also expressed interest in acquiring Chemaf in November 2025.
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Image Credit: The Africa Report
