Copper and cobalt mining: Lloyds Metals buys CHEMAF Group to expand in DRC

Lloyds Metals and Energy Ltd (LMEL) said on Tuesday it acquired Congo-based CHEMAF Group. The move takes LMEL into copper and cobalt mining. LMEL said it aimed to diversify into critical minerals. These minerals are key for the global electric vehicle battery supply chain.

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The deal placed LMEL in the Democratic Republic of Congo (DRC), a major source of cobalt and copper. The step came as India increased overseas mining efforts. These efforts aimed to secure raw materials for green energy plans. LMEL, a large iron ore producer, did not disclose the deal value.

DRC copper and cobalt deal and the CHEMAF Group acquisition

LMEL confirmed the purchase of the CHEMAF Group, including Chemaf Resources Limited and Chemaf SA. The announcement also covered related entities operating in the DRC. The company said in a statement that the acquisition was completed. CHEMAF runs copper and cobalt mining and processing operations.

The acquisition was carried out through Virtus Lloyds Minerals Holding (VLMH). VLMH is a joint venture between an LMEL entity with 49 per cent. The other partner is Virtus Minerals Inc, a US-headquartered mining investment company. LMEL said this structure executed the transaction.

DRC copper and cobalt assets in the Katanga Copper Belt

CHEMAF’s assets sit in the Katanga Copper Belt, known for copper-cobalt geology. LMEL said the assets increase its presence in critical minerals. These minerals support the global energy transition. The DRC holds over 70 per cent of world cobalt reserves. The DRC is also among the largest copper producers.

Through VLMH, Lloyds Metals said it will operate the acquired mining and processing assets. VLMH will manage the value chain from mine development to offtake. LMEL also referred to ongoing expansion projects in the DRC. The company linked these projects to higher output.

After the expansion projects finish, LMEL projected output of about 100,000 tonnes per annum of copper. It also projected about 20,000 TPA of cobalt. Peak revenues were estimated at USD 1.5 billion a year. LMEL placed that at about Rs 14,000 crore annually.

With inputs from PTI