US firm Virtus launches Chemaf Transition in Congo Mining Partnership

?U.S. Virtus Minerals announced?on?Wednesday that it was working to restart Congolese copper and cobalt producer Chemaf’s mines, after receiving regulatory approval. This marks the first acquisition of an operating mine under the U.S. - Congo minerals partnership following a flurry offtake agreements.

Virtus stated that its main focus is on inventory verification, technical and operation assessments, and restart planning for Chemaf’s entire asset base.

The Democratic Republic of Congo has the largest reserves of lithium and copper, which are essential for electric vehicles and energy transition.

U.S. officials have been "pushing" efforts to increase their critical mineral stockpiles and loosen China’s grip on supply chains. Jacob Helberg, Under Secretary for Economic Affairs at the Department of State, said that Kinshasa approved the sale to Virtus of Chemaf under the mineral deal between the two countries.

Chemaf confirmed that the Congo has approved the deal. Virtus confirmed that clearances have been obtained from the Mines Ministry, the Portfolio ministry and the?state mining company Gecamines.

It has been reported that Gecamines executives were removed from their posts partly due to concerns that they were obstructing a?Chemaf deal, which required the approval of the state miner as the 'lease holder.

Gecamines &?Congo Mines Ministry did not respond immediately to requests for comments.

Virtus' priority is to stabilize?the business? and support a responsible re-start of operations? while building long-term expansion beyond the flagship Mutoshi & Etoile Projects through Chemaf’s larger permit portfolio.

The U.S. company said that workforce continuity would be key to the transition. It added that it was too early to comment about output targets, staffing or capital expenditure. (Reporting and editing by Pratima Deai, Alison Williams and Pratima Akalaare Adombila)

(source: Reuters)