en.Wedoany.com Reported - U.S. Deputy Secretary of State Jacob Helberg announced on Tuesday local time that U.S.-based Vitus Minerals has successfully acquired Chemaf Mining, a cobalt and copper producer in the Democratic Republic of Congo. The transaction involves an acquisition consideration of approximately $30 million and includes the assumption of its $200 million in unsecured debt and $700 million in secured debt, marking the formal entry of U.S. capital into the critical minerals sector in Congo.
The acquisition target, Chemaf Mining, is a privately held company with multiple copper-cobalt mines in Congo. The Congolese government had previously compiled a list of assets, including the Chemaf mines, actively seeking to develop mineral partnerships with the United States to change the long-standing dominance of Chinese companies in this sector. According to an initial report by The Wall Street Journal, Vitus Minerals also pledged to raise approximately $720 million for subsequent investments.
The deal had faced obstacles. Reuters reported last month that executives at the Congolese state-owned mining company Gécamines had expressed opposition to the acquisition, after which the Congolese government removed its CEO and chairman. Although Gécamines holds no stake in Chemaf Mining, it possesses lease rights to the relevant mines, and any change in control requires its approval.
Through this acquisition, Vitus Minerals will gain key assets of Chemaf Mining, aiming to establish a new foothold for the United States in Africa's critical mineral supply chains. Currently, Congo is the world's largest producer of cobalt, a core raw material for electric vehicle batteries and aerospace alloys. This transaction not only provides new capacity support for the company but also reflects profound changes in the global competition landscape for critical mineral supply chains. Vitus Minerals' next steps will involve integrating the mining assets and advancing its committed capital expenditure plans.
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