Lloyds Metals and Energy Limited (LMEL) has announced the completion of the 100% acquisition of the CHEMAF Group in the Democratic Republic of Congo (DRC). This transaction was finalized through its step-down subsidiary, Virtus Lloyds Minerals Holding (VLMH), a joint venture with Virtus Minerals (USA). The acquisition establishes LMEL’s position in critical minerals, bringing its projected DRC copper capacity to 100,000 TPA and cobalt capacity to 20,000 TPA, significantly aligning with global strategic supply chain goals.
Completion of Strategic Acquisition in DRC
Lloyds Metals and Energy Limited (LMEL) has confirmed the completion of the acquisition of 100% equity stake in the CHEMAF Group Limited (“CHEMAF”). This crucial transaction was facilitated by LGRF, a wholly owned subsidiary, through its joint venture entity, Virtus Lloyds Minerals Holding (“VLMH”). CHEMAF comprises copper and cobalt mining and processing companies operating in the Democratic Republic of Congo (DRC).
Transaction Structure and Rationale
VLMH, which holds the acquired stake, is a joint venture where LGRF holds 49% equity and Virtus Minerals Group, USA, holds 51% equity. The total Cash Consideration for the acquisition of 100% equity in CHEMAF shall be up to USD 30 Million. This acquisition is a direct furtherance of the Company’s strategy to diversify into critical minerals and build a global-scale copper and cobalt mining platform.
This deal is strategically significant as it is the First-Deal Under the US-DRC Minerals Pact, promising preferential access and regulatory incentives for US-aligned investors. It also aids in de-risking supply chains away from Chinese-dominated mineral networks.
CHEMAF Group Overview and Capacity Boost
CHEMAF Group, incorporated in October 2005, is vertically integrated, focusing on mining and hydrometallurgical processing of copper and cobalt ores. The company operates the Etoile processing facility and is developing the Mutoshi mine project in the Katanga Copper Belt.
The acquisition drastically enhances LMEL’s production profile:
- Etoile Facility (Current): 20,000 TPA Copper Cathodes and 4,000 TPA Cobalt.
- Mutoshi Plant (Expansion): Target of 50,000 TPA Copper and 16,000 TPA Cobalt.
Upon completion of all ongoing expansion projects, the LMEL Group’s total production capacity in the DRC is projected to reach approximately 100,000 TPA of Copper and 20,000 TPA of Cobalt. Furthermore, the company had previously disclosed the acquisition of a 50% stake in Nexus Holdco FZCO, which adds to the projected capacity.
Regulatory Approvals
The transaction received full endorsement and approval from the Government of the DRC, specifically through its Ministry of Mines, which is mandatory for changes of control in entities holding mining permits. No further governmental or regulatory approvals are pending for the completion of this transaction.
Source: BSE
