DR Congo Nears Decision on Chemaf Sale Amid US-DRC Minerals Partnership

The Democratic Republic of Congo (DRC) is nearing a decision on the sale of Chemaf Resources Limited, a copper and cobalt mining company, marking a significant test for the recently established minerals partnership between the DRC and the United States. Chemaf, which owns the Mutoshi copper and cobalt project, has attracted at least six bidders since being put up for sale in 2023. The sale process could conclude as soon as Tuesday during a critical minerals ministerial meeting in Washington, according to sources close to the matter.

"In the next couple of days or so we should be in a position to decide which way it goes," said Louis Watum Kabamba, DRC's Minister of Mines. "We understand that time is ticking. We've got to run fast to complete this."

The U.S. has been advocating for the DRC to award the sale to a consortium led by Virtus Resources, a group founded by U.S. security and intelligence service veterans. The consortium also includes U.S. hedge fund Orion Resource Partners and Indian conglomerate Lloyds Metals. This move aligns with Washington's broader strategy to reduce dependence on China for critical minerals.

Chemaf has been up for sale since 2023. A planned sale to China's Norinco fell through in 2024 after opposition from local state-owned miner Gécamines and the U.S. Other interested bidders include private Congolese company Buenassa and United Critical Minerals, founded by Austrian entrepreneur Cevdet Caner. Both groups are new to mining. At least three other groups also submitted bids but have not advanced in talks, according to people close to the process.

The sale has been complex due to multiple parties holding veto power over any deal for Chemaf: its owners, the Virji family; the DRC government, which holds a 5% stake; and commodity trading firm Trafigura, a crucial creditor after arranging a $600 million loan to the project in 2022.

Washington has strongly backed the Virtus bid, viewing it as a symbolic transaction that would help solidify the minerals deal signed in December, according to people familiar with the administration's thinking. Several sources close to the transaction indicated that Virtus was leading, although others noted that the deal was not yet finalized and could still change.

Chemaf currently produces less than 20,000 tonnes of copper annually at its Etoile mine. However, it has the potential to become one of the world's largest cobalt producers once a $300 million expansion of its Mutoshi project is complete, which any new owner will need to fund.

Chris Vandome, who leads the Chatham House Critical Minerals Initiative in London, noted that Washington's focus on Chemaf "reflects the U.S. strategic interest in DRC as well as the new mercantilist approach to Africa of the Trump administration." He added that China's dominance over minerals supply chains was "core to U.S. intervention in March 2021 to convince the Congolese not to sell Chemaf to a Chinese firm."

While Minister Kabamba declined to specify whether the DRC administration had a preferred bidder at this stage, he emphasized that a deal would be "beyond transactional" given its importance for local communities. He also confirmed that his government had sent a list of strategic mining projects in the country to Washington to encourage investment into these assets.

Orion, Virtus, Trafigura, Buenassa, and the Virji family all declined to comment.