Congo’s state miner, Gecamines, has offered $1 million to block the sale of Chemaf’s assets to China’s Norinco.
Chemaf, a copper and cobalt producer crucial to electric vehicles, had previously agreed to sell to Norinco for $900 million to $1 billion.
The U.S. government is pressuring Congo to find alternatives to Norinco, aiming to limit China’s influence over critical metals.
Gecamines, which owns Chemaf’s mining lease, rejected the Norinco deal and proposed its own bid, citing national interests.
Chemaf faces a financial crisis, with debts nearing $1 billion and urgent needs for $300 million to expand operations.
The stalemate has deepened tensions, with U.S. officials urging Western firms to invest and secure Congo’s resources.
Norinco’s offer includes debt settlement and plans to boost Chemaf’s production of copper and cobalt significantly.
Meanwhile, Chemaf’s operations have stagnated, with unpaid debts, halted projects, and unpaid salaries for 3,500 workers.
Trafigura, a major creditor, remains silent, while Chemaf struggles under a creditor protection agreement set to lapse in 2024.
Gecamines Chairman Robert Lukama confirmed his company’s determination to prevent Norinco from acquiring Chemaf’s assets.
The outcome of this standoff could reshape control of cobalt, a metal critical to the global energy transition.
