Kinshasa, DRC – A U.S.-based consortium, Virtus Minerals Inc., has reached an agreement to acquire Chemaf SA, a copper and cobalt producer in the Democratic Republic of Congo, in a deal that underscores Washington’s increasing efforts to secure critical mineral supply chains in Africa. The acquisition, announced on , comes as competition intensifies between the United States, China, and India for access to the DRC’s vast mineral resources.
Virtus will pay approximately $30 million for Chemaf’s shares and assume the company’s existing liabilities, including debt owed to commodities trader Trafigura Group. The Delaware-registered firm also plans to invest up to $750 million in capital, funded through a combination of debt and equity, according to Managing Director Phil Braun. The deal was discussed on the sidelines of an event in Washington D.C. Attended by Congolese President Felix Tshisekedi, hosted by the U.S. Chamber of Commerce.
Chemaf, founded in 2001 by businessman Shiraz Virji, has been seeking a buyer since after encountering financial difficulties while developing the Mutoshi project – a site projected to become one of the world’s largest cobalt mines. A previous attempt to sell the company to a Chinese state-owned enterprise collapsed in when Congolese authorities withheld necessary approvals, highlighting the growing geopolitical tensions surrounding access to the DRC’s mineral wealth.
The DRC holds the world’s largest reserves of cobalt and is the second-largest producer of copper, both essential components in electric vehicle batteries and other green technologies. China currently dominates the production of both metals within the DRC. The U.S. Is seeking to diversify its supply chains and reduce its reliance on China for these critical minerals, a strategy reflected in a partnership signed with the DRC in granting American investors preferential access to select critical mineral projects.
Virtus Minerals Inc. Is partnering with Orion CMC, a new platform led by Orion Resources Partners and backed by the U.S. International Development Finance Corporation, to facilitate the acquisition. The company is led by veterans of the U.S. Military and intelligence community, signaling the strategic importance Washington places on securing these resources.
Virji, who signaled his support for a new investor capable of advancing Chemaf’s projects, stated that the acquisition would benefit the DRC for decades to come through the completion of the Etoile Phase 2 and Mutoshi developments. He founded Chemaf after recognizing opportunities presented by the privatization of the DRC’s mining industry.
The protracted sale process of Chemaf has become emblematic of the intensifying competition between Washington and Beijing for access to Congo’s resources. This competition extends beyond direct investment, with the U.S. Adopting a new strategy to counter China’s influence in Africa’s critical minerals sector. The deal also comes amid increasing pressure on the DRC to enforce local ownership rules for copper and cobalt miners, potentially rebalancing stakes held by global mining giants.
While the acquisition is still subject to final approvals, it represents a significant step in the U.S.’s efforts to establish a more secure and diversified supply chain for critical minerals. The $750 million investment planned by Virtus is expected to significantly expand production at Chemaf’s facilities, potentially challenging China’s current dominance in the Congolese cobalt and copper markets.
The situation also highlights the delicate balance the DRC faces in navigating relationships with major global powers. While welcoming investment from the U.S., the Congolese government remains mindful of its existing economic ties with China and the need to ensure that any new agreements benefit the country’s long-term development.
The acquisition of Chemaf by Virtus Minerals Inc. Is not merely a commercial transaction; It’s a clear demonstration of the growing geopolitical importance of Africa’s mineral wealth and the intensifying competition among global powers to secure access to these vital resources. The outcome of this deal, and others like it, will likely shape the future of the electric vehicle industry and the broader global transition to green technologies.
