US-Backed Investors Acquire Chemaf in DRC Bet on Copper, Cobalt Restart by 2027

Minteesinot Niggusie

A US-led consortium has taken control of a distressed copper and cobalt producer in Democratic Republic of Congo, setting out plans to restart operations by early 2027 in a deal tied to Washington’s push to secure critical mineral supply chains. Virtus Minerals and Lloyds Metals & Energy have acquired the assets of Chemaf for 30 million US dollars, assuming around 900 million US dollars in debt.

The transaction is one of the first major operational deals under the emerging US-DRC minerals partnership, which aims to counter China’s dominance in battery metals. The new owners plan to resume full production by January 2027, beginning with a temporary suspension of operations at the Lubumbashi site for up to two months.

Work is also under way to prepare both Lubumbashi and Kolwezi assets for simultaneous large-scale output. Chemaf, previously controlled by Shalina Resources, will now operate under a joint structure between the US and Indian partners. The consortium has pledged to retain the existing workforce while stabilising operations.

A key part of the turnaround strategy involves reviving the Mutoshi project near Kolwezi, which has remained largely inactive since 2019 amid weak cobalt prices and funding constraints. The project is expected to play a central role in lifting future output.

Leadership changes have accompanied the restructuring, with A.N. Subramaniyam appointed chief executive, supported by technical advisers from Lloyds Metals. The deal comes as competition intensifies for control over critical minerals essential for electric vehicles and clean energy technologies.

However, execution risks remain, with questions raised over Virtus Minerals’ track record in managing large-scale mining operations and the broader challenges of turning around distressed assets in complex jurisdictions.

The region is closely watched as a strategic hub for metals powering the global energy transition.