DAKAR, April 22 - U.S.-based Virtus Minerals and India’s Lloyds Metals & Energy intend to bring Chemaf back to full copper and cobalt production in January 2027 following a takeover backed by Washington, a union official told staff and confirmed in company communications.
Virtus acquired Chemaf’s mining assets in March for $30 million and has agreed to take on Chemaf’s outstanding debt of roughly $900 million. The acquisition represents the first on-the-ground transaction carried out under the U.S.-Democratic Republic of Congo partnership that aims to channel critical minerals away from China and toward Western markets.
Management of Chemaf has been transferred to Virtus Lloyds Mineral Holding, a joint venture between the U.S. and Indian partners, according to a message circulated to employees by Arum Awat, a Virtus executive. The joint venture confirmed it will keep the existing workforce and move quickly to restart operations after what the company described as years of uncertainty.
"Our priority is to have everything completed as soon as possible," the company said in a statement to Reuters, while declining to provide a specific production timeline.
Workers were informed on Tuesday that production at Chemaf’s Lubumbashi site - currently the company’s only operating mine - will be temporarily halted for up to two months to carry out maintenance, while work is accelerated at both Lubumbashi and Kolwezi to prepare for future production and processing, Juresse Lokosha, president of the Union for Social Peace, said.
Lokosha quoted the new owners as saying they aim to begin full, simultaneous production at the Lubumbashi and Kolwezi sites by January next year. In the staff note, Awat described the transition as intended to stabilise operations and to ensure completion of the Mutoshi copper and cobalt projects, which have been delayed by financial and operational difficulties.
The Mutoshi project, located near Kolwezi, has been inactive since 2019 after processing was suspended amid weak cobalt prices and financing shortfalls, leaving the asset largely dormant prior to the takeover.
The company has appointed India’s A.N. Subramaniyam as chief executive officer, according to the staff note and Lokosha. Technical specialists from Lloyds Metals will serve in advisory roles alongside Chemaf teams, while the existing Chemaf leadership will remain to provide continuity during the transition.
Separately, reporting this week indicated Virtus may have exaggerated its prior mining experience, a matter that highlights potential execution risks as the new owners attempt to restart and expand operations.
The joint venture’s immediate operational plan includes a brief suspension of Lubumbashi output for maintenance and accelerated construction and processing work at both sites, with a stated objective of reaching full dual-site production in January 2027. Company statements and the union communication outline the steps but do not provide detailed timelines beyond the January 2027 target.
For workers and local supply chains, the announced maintenance pause and the planned ramp-up imply a defined near-term disruption followed by an intended return to broader activity across two major Congolese mining locations. The note to staff emphasises workforce retention and project completion as the principal aims of the new ownership.