The Democratic Republic of Congo is rapidly becoming a focal point in a geopolitical contest between the United States and China, as both nations vie for access to the country’s vast reserves of cobalt and other minerals crucial for the burgeoning electric vehicle and advanced manufacturing sectors. A deal announced Monday, , sees Virtus Minerals Inc., a Delaware-registered firm comprised of former U.S. Military and intelligence personnel, poised to acquire Chemaf SA, a debt-laden Congolese copper and cobalt producer, and assume its liabilities, including significant debt owed to commodities trader Trafigura Group.
Virtus Minerals plans to inject approximately $750 million in debt and equity to expand Chemaf’s production capacity, according to Managing Director Phil Braun. The acquisition places Chemaf, and by extension, a significant portion of Congo’s mineral wealth, under potential U.S. Influence, a development that follows the recent collapse of a proposed sale to a subsidiary of China’s Norinco Group. Congolese authorities declined to approve the Norinco deal amid escalating geopolitical concerns regarding control of these strategically important resources.
Debt-laden miner becomes strategic prize
Chemaf, currently controlled by the Virji family, is 94.7% owned by Chemaf Resources Ltd., with the DRC government holding a roughly 5% minority stake. Despite carrying approximately $900 million in debt, the company possesses substantial reserves at its flagship Mutoshi project, making it an attractive, albeit complex, asset. The proposed transaction will see U.S. Investment firm Orion Resource Partners providing financing, with Virtus Minerals overseeing operations.
The interest in Chemaf extends beyond the U.S. And China. At least half a dozen bidders have reportedly been circling the asset, highlighting its strategic importance. Potential buyers include United Critical Minerals LLC, chaired by Allied Gold founder Justin Dibb; a subsidiary of India’s Jindal Steel & Power Ltd., signaling growing Indian interest in battery metals; Lloyds Metals and Energy Ltd.; Global Critical Resources Corp., controlled by Austrian entrepreneur Cevdet Caner; Buenassa Sarl; and state-owned miner Gécamines.
Global bidders circle Congo asset
The failed Norinco deal, initially planned for , underscores the increasing scrutiny surrounding Chinese investment in Congo’s mineral sector. Prior to the collapse, Chemaf had formally launched a sale process, driven by funding pressures that stalled progress on the Phase 2 expansion of the Etoile mine and the greenfield Mutoshi project. Chairman Shiraz Virji had previously expressed a desire to bring in a new investor capable of advancing these projects, stating, “I am pleased to have found a new owner that can invest in completing the development of Etoile Phase 2 and Mutoshi, which will be to the benefit of the DRC for decades to come.”
The U.S. Government reportedly played a role in blocking the Norinco transaction, with U.S. Officials urging Congolese President Félix Tshisekedi to intervene. This intervention highlights the growing recognition in Washington of the strategic importance of securing access to minerals vital for future industrial and technological competitiveness.
Chinese deal collapse heightens geopolitical stakes
The Virtus Minerals acquisition comes as the U.S. Expands its engagement in Central Africa, seeking to counter China’s growing influence. A peace agreement brokered by the United States between Congo and Rwanda, signed in , is anticipated to improve investment conditions and mitigate conflict risks in the region, further bolstering the appeal of Congolese mineral assets to Western investors.
Analysts suggest that U.S.-aligned bidders may now gain momentum, benefiting from the improved geopolitical landscape and Washington’s increased focus on securing critical mineral supply chains. The competition for control of Chemaf is not merely a commercial transaction; it represents a broader struggle for influence in a region rich in resources essential for the global energy transition and technological advancement. The outcome of this contest will likely have significant implications for the future of the electric vehicle industry, defense systems, and advanced manufacturing worldwide.
