Virtus Minerals has finalized the acquisition of Chemical of Africa (Chemaf) for approximately $30 million. The deal was completed on March 27, according to a Wall Street Journal article published on March 31 and relayed on the U.S. company’s website.

The transaction includes a plan to mobilize nearly $720 million to develop the copper and cobalt producer’s projects. The framework includes an initial $200 million contribution from Virtus and its operating partner, India’s Lloyds Metals. A further $475 million is expected from New York-based investment fund Orion Resource Partners, along with about $75 million from other sources.

While these figures point to a substantial financing package, details remain unclear. Work is set to begin in April, with a target to finalize the financing by early next year. The Wall Street Journal reported that Orion declined to comment, and no information has been disclosed on the additional funding sources. It is also unclear whether these commitments are firm or conditional, or whether they involve debt, equity, or hybrid instruments.

Beyond the takeover, restarting Chemaf’s operations will require additional capital. Up to $300 million may be needed to complete expansion projects at the Mutoshi mine in Kolwezi and the Étoile mine in Lubumbashi. These sites are expected to produce around 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide annually.

These funding needs come on top of existing liabilities, raising questions about the overall financing structure. Chemaf’s debt is estimated at nearly $1 billion, including obligations to local subcontractors and commodities trader Trafigura.

No clarity on subcontractor debt

In 2022, Trafigura arranged a $600 million syndicated loan to finance processing capacity expansion and the mechanization of the Mutoshi mine. Virtus said it had reached an agreement with the trader, without disclosing the terms.

By contrast, there is no clarity on the debt owed to local subcontractors, whose total remains unknown. The Wall Street Journal reported that Virtus declined to comment on any plans to settle this debt.

Asked about financing the restart of Chemaf’s operations, Virtus said in a March 13 press release that Congolese authorities had approved the deal after reviewing the transaction structure, the financial capacity of the consortium, and its plans for Chemaf’s activities.

Virtus also indicated that it intended to deliver on its commitments through investments, job creation, and operational results, according to the same release.

The U.S. government has identified the acquisition of Chemaf’s assets by Virtus and its Indian partner as one of three projects critical to implementing the strategic partnership on critical minerals signed with the Democratic Republic of Congo (DRC) on December 4, 2025. The deal forms part of a broader effort to secure supplies of critical minerals amid Chinese dominance. Copper and cobalt are essential for advanced military systems, the energy transition, and the production of batteries for electric vehicles and electronic devices.

However, in practice, the project’s success will depend on the consortium’s ability to secure the announced financing and stabilize operations at sites weakened by illegal mining activity.

Pierre Mukoko