The Democratic Republic of Congo’s state-owned mining company, Gecamines, has made a last-ditch effort to prevent China’s Norinco from acquiring the struggling cobalt and copper miner Chemaf.
Gecamines has offered $1 million for Chemaf’s assets, aiming to maintain control over the critical minerals essential for electric vehicles and clean energy infrastructure. The move comes as U.S. officials express concern over China’s increasing dominance in the region’s mining sector.
Chemaf, burdened by significant debt, entered into a deal with Norinco in June to sell its assets. However, Gecamines’ intervention has complicated the transaction, as the state-owned company holds the lease to Chemaf’s mines.
While Norinco has offered a substantial sum to acquire Chemaf, including debt settlement and investment in future expansion, Gecamines believes its offer is more favorable. The state-owned company intends to conduct a thorough audit of Chemaf’s debts before finalizing a payment plan.
The delay in the deal has exacerbated Chemaf’s financial woes, impacting its operations and ability to pay its workers and suppliers. The company’s creditors, including commodities trader Trafigura, are closely monitoring the situation and seeking a resolution that safeguards their investments.
The U.S. government has actively engaged with Congo to dissuade the country from approving the Norinco deal, urging it to explore alternative options. U.S. officials are also encouraging Western companies to consider investing in Chemaf’s assets.
The outcome of this high-stakes battle for control of Chemaf will have significant implications for the global supply of critical minerals and the geopolitical dynamics in the region.