US firm Virtus Minerals buys Congolese cobalt producer Chemaf
US firm Virtus Minerals has acquired Congolese cobalt and copper producer Chemaf, US Under Secretary of State for Economic Affairs Jacob Helberg said on Tuesday.
Congo has been seeking to develop a minerals partnership with Washington and has drawn up a list of assets, including Chemaf's mines, to attract US investment into a sector long dominated by Chinese firms.
"US firm Virtus' acquisition of the Chemaf mines in the DRC is HUGE for America and for the people of the DRC," Helberg said in a post on X.
Virtus had earlier said it had agreed to acquire Chemaf for about $30-million. Chemaf also has $200-million in unsecured debt and $700-million in secured debt.
The deal had faced opposition from the CEO and chair of Congolese State miner Gecamines, prompting Congo to remove them from their positions, Reuters reported last month.
Chemaf is privately owned, and Gecamines has no stake in it. However, the miner owns the lease to Chemaf's mines, and any bid for control of Chemaf cannot proceed without its approval.
The Wall Street Journal, which first reported on the deal earlier on Tuesday, said Virtus has also committed to raising about $720-million in investment.
