By: Ecofin agency

Chemaf Resources, the operator of the Etoile and Mutoshi copper and cobalt mines in the Democratic Republic of Congo (DRC), is considering a halt to operations by the end of November, according to an internal email cited by Bloomberg. The move comes as the company struggles to find a new financing partner.

The potential closure, announced by Chemaf Chairman Shiraz Virji, fuels uncertainty over the future of the approximately 4,300 Congolese employees the company lists on its website.

Chemaf has been seeking a new investor since 2023 to help settle outstanding debts and support mining activities in the DRC. Chinese firm Norinco had positioned itself with a $1.4 billion offer, but walked away from the transaction in March after being blocked by state-owned mining company Gécamines.

Gécamines, the original owner of the Etoile and Mutoshi mining leases, had also submitted a counteroffer of roughly $1 million to reclaim the assets, a move that appears not to have materialized.

In the email, Virji indicated that Chemaf continues to seek an "appropriate investor." However, due to persistent financial difficulties, the company plans to cease operations within the next two months "if no investor is in place." No details were provided regarding how the staff at the two mines would be managed in the event of a shutdown.

In August, Chemaf had stated that operations were continuing "slowly, pending the conclusion of the ongoing investment process." That statement suggested a slowdown in activities at the sites, though the exact impact of this strategy was not specified.

Securing an investor is crucial not only for maintaining current employment but also for advancing work aimed at optimizing production. Chemaf's long-term goal for the two mines is to achieve a combined annual output of 75,000 tons of copper and 20,000 tons of cobalt.