BTA2023 Competition for Africa’s critical minerals is intensifying, with U.S., Chinese and Indian investors locked in a high-stakes contest for cobalt assets in the Democratic Republic of Congo (DRC), the world’s largest source of the battery metal.
At the centre of the battle is Chemaf SA, a privately held copper and cobalt producer controlled by the Virji family, led by Kenyan-Indian multimillionaire Shiraz Virji. As global powers race to secure supply chains for electric vehicles, defence systems and advanced manufacturing, Congo’s mineral wealth is rapidly becoming a frontline in geopolitical competition.
U.S.-backed bid moves Congo into strategic spotlight
U.S.-based Virtus Minerals Inc., a Delaware-registered firm led by former U.S. military and intelligence officials, has emerged as a key contender after agreeing to acquire Chemaf and assume its liabilities, including debt owed to commodities trader Trafigura Group.
Virtus Minerals’ Managing Director Phil Braun said the company plans to deploy about $750 million in combined debt and equity to expand production and strengthen operations.
The proposed transaction underscores Western efforts to reduce reliance on China for minerals essential to the energy transition, defence technologies and high-end manufacturing.
Debt-heavy miner becomes a strategic prize
Chemaf is approximately 94.7% owned by Chemaf Resources Ltd., with the DRC government holding a roughly 5% minority stake. Despite carrying around $900 million in debt, the company remains highly attractive due to the scale of resources at its flagship Mutoshi project, one of Congo’s most significant undeveloped cobalt deposits.
Under the current deal structure, Orion Resource Partners, a U.S. investment firm, is expected to provide financing, while Virtus Minerals would take over operational control.
Global bidders circle Congo’s cobalt assets
Interest in Chemaf is far from limited to the United States. At least half a dozen international bidders are pursuing the asset, reflecting the growing strategic value of Africa’s battery-metal reserves.
Potential buyers include:
- United Critical Minerals LLC, chaired by Allied Gold founder Justin Dibb
- A subsidiary of India’s Jindal Steel & Power Ltd.
- Lloyds Metals and Energy Ltd., signalling expanding Indian interest in cobalt and battery metals
- Global Critical Resources Corp., controlled by Austrian entrepreneur Cevdet Caner
- Buenassa Sarl
- Congo’s state-owned miner Gécamines
The diversity of bidders highlights how Africa’s mineral sector is increasingly shaped by geopolitical considerations rather than purely commercial ones.
Failed Chinese deal raises geopolitical tensions
The surge in interest follows the collapse of a planned 2024 sale to a subsidiary of China’s Norinco Group, after Congolese authorities declined to approve the transaction amid heightened geopolitical scrutiny.
Earlier that year, Chemaf had formally launched a sale process as funding constraints slowed progress on two major projects: the Phase 2 expansion of the Etoile mine and development of the greenfield Mutoshi project.
At the time, Chairman Shiraz Virji expressed openness to new ownership capable of unlocking long-term value.
“I am pleased to have found a new owner that can invest in completing the development of Etoile Phase 2 and Mutoshi, which will be to the benefit of the DRC for decades to come,” Virji said.
Reports later indicated that U.S. officials urged President Félix Tshisekedi to block the Chinese-backed transaction, underscoring the strategic sensitivity surrounding control of Congo’s mineral assets.
Washington steps up Central Africa engagement
Analysts say U.S.-aligned bidders may now have an advantage as Washington deepens its diplomatic and economic engagement in Central Africa.
A U.S.-brokered peace agreement between Congo and Rwanda, signed in 2025, is expected to ease security risks and improve investor confidence across one of the world’s richest mining corridors.
As demand for cobalt accelerates globally, Chemaf’s fate is shaping up as a test case for how Africa’s mineral wealth will be governed — and who will control the raw materials powering the next generation of technology.
