• DRC approves Virtus takeover of Chemaf, enabling transfer of mining assets
• Deal backed by U.S. amid strategic race for critical minerals
• Financing, operational capacity, and employment impacts remain uncertain

 DRC approved the takeover of Chemaf (Chemical of Africa) by Virtus Minerals on March 13, Bankable learned from a source involved in the process. According to the source, the decision is contained in a letter from Mining Minister Louis Watum to Virtus CEO Phil Braun.

The approval is required under Congolese law for any formal transfer of mining assets. It clears the way for the finalization of a share transfer agreement signed in late January between Virtus and Zedra Skye Trustees, which represents nearly 95% of Chemaf's shareholders.

The decision was reached in consultation with Gécamines, which owns certain permits operated by the copper and cobalt producer. It also aligns with a strategic critical minerals partnership signed last December between the Democratic Republic of Congo and the United States. Implementation of that partnership is overseen by a coordination body that includes the mining minister and Gécamines leadership.

For the United States, engaged in a race to secure critical mineral supplies, Chemaf represents a near-turnkey asset. The company operates two active mines: Mutoshi, in Kolwezi, and Etoile, in Lubumbashi. Expansion projects at both sites are estimated to be at least 80% complete. An additional $300 million would be needed to complete the work. At full capacity, the two mines are expected to produce around 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide per year.

In addition to permits leased from Gécamines, Chemaf holds around 60 titles, including about 30 exploitation permits across several provinces, according to the mining registry as of Sept. 30, 2025. The company carries close to $1 billion in debt.

Uncertainties

Washington is said to have backed Virtus to secure the asset. In recent months, several media outlets reported that officials from the National Security Council and the State Department applied diplomatic pressure on Congolese authorities in support of Virtus’s bid. That pressure appears to have overcome government reservations.

President Felix Tshisekedi had expressed doubts about Virtus’s financial and operational capacity to take over Chemaf, according to Africa Intelligence. The company, founded by former U.S. military personnel, has limited mining experience. In the DRC, it holds only a small metallurgical plant in Haut-Katanga, described by Africa Business+ as not comparable in scale to Chemaf’s operations.

Under the transfer agreement, Virtus would assume Chemaf’s debts and pay $30 million to shareholders. It also plans to hand over operations to Indian firm Lloyds Metals and Energy, which has limited experience in copper-cobalt projects, particularly in Africa. To finance the deal, Virtus has turned to New York-based Orion Resource Partners, which says it manages about $8.6 billion for institutional investors. No binding agreement has been signed to date.

The fate of Chemaf’s more than 3,000 direct employees and thousands of contractors remains unclear. In his letter, the mining minister is said to have noted only that the Congolese state and private Congolese interests should each hold a 10% stake in the company, in line with national legislation.

Kinshasa’s approval is a setback for Buenassa, a Congolese company that had hoped to acquire Chemaf to secure its raw material supply for more than 20 years. Buenassa, which is developing a refinery project, aimed to use the acquisition to accelerate vertical integration across extraction, refining, trading and strategic storage.

Pierre Mukoko, with Bankable