Highlights: 

• Chemaf could halt copper cathode production by November after failed sale process that began in August 2023
• Company needs $250-300M to complete expansion projects despite already investing $570M in new mines
• 3,000 jobs at risk as unions report wage delays amid $900M total debt burden

Mining company Chemaf may cease copper cathode production as early as November after months of financial difficulties, according to a management letter obtained by Radio Okapi on September 19, 2025. Board Chairman Shiraz Virj confirmed the potential shutdown, attributing it to the collapse of sale negotiations that began in August 2023.

Although a potential buyer had been identified, the transaction failed to secure expected regulatory approvals by March 2025. "We are doing everything we can to reach an agreement. However, in the absence of a new investor, Chemaf will be forced to cease operations," Virj said.

The company has been stretched by ambitious expansion projects, particularly developing the Mutoshi mine in Kolwezi and phase 2 of the Étoile mine in Lubumbashi. Both projects are over 80% complete, with more than $570 million already invested, but still require between $250 million and $300 million to finish. Once operational, these facilities would boost Chemaf's annual capacity to 75,000 tons of copper and 25,000 tons of cobalt hydroxide.

Owned 94.68% by Chemaf Resources Ltd and 5% by the Congolese government, the company carries total debt approaching $900 million. In June 2024, Chemaf announced an agreement to sell assets to Chinese group Norin Mining, including a major cobalt project on a Gécamines permit. However, the state-owned company opposed the transaction, seeking control of Chemaf itself.

Bloomberg reports that an American consortium led by Orion Resource Partners and Virtus Minerals, backed by main creditor Trafigura, is currently negotiating a takeover. Orion would provide financing while Virtus handles management. However, according to Jeune Afrique, this deal also lacks Gécamines' approval.

To address the impasse, company unions have initiated talks with Kinshasa authorities, calling for direct state involvement to guarantee jobs and establish tripartite dialogue. Unions already report wage delays, production drops, and benefit cuts affecting approximately 3,000 workers who fear worsening conditions if sale uncertainty persists.

The potential closure would eliminate a significant copper and cobalt producer in the DRC's mining heartland, highlighting the challenges facing mining companies caught between expansion ambitions and financing constraints in the current market environment.

Ronsard Luabeya