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Local Workers Demand Government Action on Stalled $900M Mining Sale

Local Workers Demand Government Action on Stalled $900M Mining Sale

  • Worker crisis escalates with delayed salaries, reduced benefits, as months-long Chemaf sale uncertainty affects production

  • Bidding competition between an American consortium and a blocked Chinese deal over debt-laden mining assets worth $900M

  • Union pressure mounts for government intervention, written job guarantees, and a dialogue framework amid financial collapse

In the Democratic Congo Republic (DRC), Workers at financially troubled mining company Chemaf Resources are urging Congolese authorities to accelerate a stalled sale process, warning that mounting uncertainty threatens jobs and social stability across the company's operations.

In a memorandum to the Ministry of Employment obtained by the Congolese Press Agency, the Chemaf union delegation highlighted deteriorating conditions as the sale drags on: delayed salary payments, reduced social benefits, and plummeting production levels at facilities including the flagship Mutoshi mine in Kolwezi.

Employee representatives, who say they have been kept in the dark for months about sale negotiations, expressed fears that aging equipment and declining activity could worsen their plight. The union is demanding direct government intervention to remove administrative obstacles, written guarantees for job protection and social rights, and the establishment of permanent dialogue between authorities, management, and workers.

The company's financial crisis has attracted international attention, with Bloomberg reporting that an American consortium including former Special Forces members is currently negotiating to acquire Chemaf's assets. The group comprises Orion Resource Partners and Virtus Minerals, backed by Trafigura, Chemaf's primary creditor.

The potential deal follows a collapsed agreement from June 2024, when Chemaf had arranged to sell its assets—including a major cobalt development project on a Gécamines permit—to Chinese group Norin Mining. However, the state-owned mining company blocked that transaction with a counteroffer, leaving workers in limbo.

Under the proposed American deal, Orion would provide financing while Virtus assumes operational management of a company struggling with debts estimated at nearly $900 million.

The standoff illustrates broader challenges facing Congo's mining sector, where geopolitical competition over critical minerals intersects with urgent needs for economic stability and worker protection.

Ronsard Luabeya

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