Congo wants Trafigura partner Chemaf's deal with China's Norinco halted
The government of the Democratic Republic of Congo is opposed to a proposal by Chemaf SA to sell its copper and cobalt mines in the country to China's Norin Mining, according to a document seen by Reuters.
Chemaf, a long-time partner of commodities trader Trafigura, said in June it had agreed to sell its mines in Congo to the unit of Chinese state-backed defence and industrial giant, China North Industries Corp (Norinco).
Chemaf put itself up for sale last year due to a cash crunch that was stalling the expansion of its Etoile and Mutoshi projects in Congo as cobalt prices slumped.
Kizito Pakabomba, Congo's mines minister, said the deal is in breach of state miner Gecamines' lease agreements with Chemaf and recommended that the transaction be stopped, according to the minutes of a council of ministers' meeting on Friday seen by Reuters.
The council of ministers adopted the ministry of mines' recommendation that the transaction be halted.
"Considering the flagrant violation of the clauses of the farm-out contract between Gecamines and Chemaf, it was recommended that the current transaction be halted following Gecamines' opposition," the minutes said.
A Chemaf spokesperson said the company would continue to work with authorities in Congo to progress the signed transaction.
Gecamines said last month that it owns mineral rights to the Chemaf mines and was also opposed to the deal with Norin.
China's miners, most of which are state-backed, have become the biggest investors in Congo as the world's second-largest economy aggressively pursues copper and cobalt supplies for its rapidly expanding electric vehicle industry.
Norinco already owns the Comica and Lamikal copper and cobalt operations in Congo, the world's No. 1 cobalt supplier.
Comments
Research Reports
Projects
Latest News
Showroom
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
