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U.S.-based Virtus Minerals and Indian partner Lloyds Metals & Energy (LYMT.NS) plan to restart full production at Congolese copper and cobalt miner Chemaf in January 2027 after a Washington‑backed takeover, a union executive has told Reuters.
Virtus bought Chemaf's mines in March for $30 million and agreed to assume Chemaf's debt of about $900 million. The Chemaf takeover is the first on-the-ground deal under the U.S.–Democratic Republic of Congo partnership intended to redirect critical mineral supplies from China to Western markets.
Chemaf, formerly owned by Dubai‑based Shalina Resources, is now managed by Virtus Lloyds Mineral Holding, a U.S.–Indian joint venture, said Arum Awat, a Virtus executive in a message to staff dated Monday and seen by Reuters on Tuesday.
The joint venture will retain Chemaf's workforce and move quickly to restart production after years of uncertainty at the company, Virtus said in a statement to Reuters, declining to comment on a timeline.
"Our priority is to have everything completed as soon as possible," the statement said.
Reuters reported this week that Virtus overstated its mining experience, highlighting execution risks.
ONLY PRODUCING MINE TO SUSPEND OUTPUT
The new owners told workers on Tuesday in a meeting they will temporarily suspend production at Chemaf's site in the city of Lubumbashi – currently the company's only producing operation – for up to two months for maintenance, while accelerating construction works to prepare for production and processing at both Kolwezi and Lubumbashi, said Juresse Lokosha, president of the Union for Social Peace, which represents workers at Chemaf.
"The new owners told us by January next year, they aim to start full production simultaneously in Lubumbashi and Kolwezi," Lokosha said.
In the note to employees, Awat said the transition is intended to strengthen operations and ensure completion of the Mutoshi copper and cobalt projects, which have been delayed by financial and operational challenges.
The Mutoshi copper and cobalt project near Kolwezi has been stalled since 2019, when processing was suspended amid weak cobalt prices and financing constraints, leaving the asset largely dormant before the takeover.
The company named India's A.N. Subramaniyam as CEO, according to Lokosha and the note to staff.
Specialists from Lloyds Metals will work alongside Chemaf teams in an advisory capacity, while Chemaf leadership will remain in place to ensure continuity, the note said.
