The company intends to work with Congolese authorities to advance the signed transaction. Credit: Chris Wiedenhoff from Pixabay.

The Democratic Republic of Congo’s (DRC) government has opposed DRC cobalt miner Chemaf Resources’s (CRL) planned sale of its copper and cobalt mines to China’s Norin Mining, Reuters reported, citing a document.

Norin Mining is a subsidiary of the state-backed China North Industries Corp (Norinco).

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In June 2024, Chemaf, a partner of commodities trader Trafigura, agreed to sell its mining assets in the DRC to Norinco.

The sale was initiated as Chemaf faced financial difficulties, hindering the expansion of its Etoile and Mutoshi projects amidst falling cobalt prices.

DRC Mines Minister Kizito Pakabomba stated that the deal violates the lease agreements held by state miner Gecamines with Chemaf.

The minutes of a council of ministers’ meeting, seen by Reuters, reveal the recommendation to halt the transaction.

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The minutes said: “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 council of ministers has adopted the recommendation from the mines ministry to stop the deal.

In response, a Chemaf spokesperson said the company intends to work with Congolese authorities to advance the signed transaction.

This July, Gecamines declared its ownership of the mineral rights to the Chemaf mines and its opposition to the sale to Norinco.

Norinco already operates the Comica and Lamikal copper and cobalt mines in the DRC.

Chemaf plans to use the proceeds from the sale to settle debts, meet creditor obligations, and introduce a new owner capable of financially and technically supporting the expansion of the Etoile mine and the development of the Mutoshi project.