The Democratic Republic of Congo has approved the takeover of copper and cobalt producer Chemaf by Virtus Minerals, clearing a key regulatory hurdle in a deal seen as strategically important for global critical mineral supply chains.
The approval, granted on March 13 by Mining Minister Louis Watum, allows the transfer of mining assets under Congolese law and paves the way for finalising a share purchase agreement signed in January between Virtus and Zedra Skye Trustees, which represents about 95 percent of Chemaf’s shareholders.
The decision followed consultations with state mining company Gécamines, which holds certain permits operated by Chemaf. It also aligns with a broader strategic minerals partnership signed in December between Kinshasa and the United States, reflecting intensifying competition to secure supplies of copper and cobalt used in batteries and clean energy technologies.
Strategic asset in global minerals race
Chemaf is considered a near-ready asset in the race for critical minerals. The company operates two producing sites: Mutoshi in Kolwezi and Etoile in Lubumbashi.
Expansion projects at both mines are estimated to be more than 80 percent complete, with around $300 million still required to bring them to full capacity. Once operational, the sites are expected to produce roughly 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide annually.
In addition to leased permits, Chemaf controls around 60 mining titles, including about 30 exploitation licences across several provinces. However, the company also carries close to $1 billion in debt, adding complexity to the transaction.
US backing and political considerations
Washington is reported to have supported Virtus’s bid as part of efforts to secure access to critical minerals and reduce reliance on rival supply chains. Media reports indicate that officials from the National Security Council and State Department lobbied Congolese authorities in favour of the deal.
The approval appears to mark a shift from earlier reservations expressed by President Felix Tshisekedi, who had reportedly questioned Virtus’s financial strength and operational capacity.
Virtus, founded by former U.S. military personnel, has limited experience in large-scale mining. Its footprint in the DRC is currently confined to a small metallurgical plant in Haut-Katanga, raising concerns about its ability to manage Chemaf’s far larger operations.
Financing and operational uncertainties
Significant doubts remain over how the acquisition will be financed and executed.
Under the terms of the deal, Virtus is expected to assume Chemaf’s debt and pay $30 million to shareholders. It also plans to delegate operations to Lloyds Metals and Energy, which has limited experience in copper-cobalt projects, particularly in Africa.
More Read
To fund the transaction, Virtus has turned to Orion Resource Partners, which manages about $8.6 billion in assets. However, no binding financing agreement has been confirmed, leaving questions over the deal’s viability.
Analysts say these uncertainties could delay implementation or affect the pace of development at Chemaf’s sites.
Local impact and ownership structure
The future of Chemaf’s workforce also remains unclear. The company employs more than 3,000 people directly, along with thousands of contractors, but no detailed plan has been outlined regarding job security or restructuring.
In his approval letter, the mining minister stipulated that the Congolese state and private local investors should each hold a 10 percent stake in the company, in line with national regulations aimed at increasing domestic participation in the mining sector.
Setback for local ambitions
The decision represents a setback for Congolese firm Buenassa, which had sought to acquire Chemaf as part of a strategy to secure long-term raw material supply.
Buenassa, currently developing a refining project, had aimed to use the acquisition to accelerate vertical integration across extraction, processing, trading and storage.
Kinshasa’s approval of the Virtus deal highlights the balancing act facing authorities—attracting foreign investment and strategic partnerships while supporting domestic players and ensuring long-term national benefit from its vast mineral resources.
