Reuters has exclusively learned that in an effort to break the deadlock in the negotiations for the acquisition of the copper and cobalt assets of Congo (Kinshasa)'s Chemaf company, China North Industries Corporation (Norinco) has proposed to adjust the transaction plan. It intends to facilitate the deal by increasing the shareholding of the Congolese government in the mine. Two sources familiar with the matter disclosed that in its latest proposal, this Chinese military-industrial giant suggested increasing its stake in the Mutoshi and Etoile mines under Chemaf from the current 5% to a maximum of 15%, subject to further negotiation on the specific proportion. This $1.4 billion acquisition deal has been in a stalemate since June last year. The turning point of the incident was the sudden submission of a competitive offer by the Congolese state-owned mining giant Gecamines, and the lobbying by US government officials on China's dominant position in African copper belt resources, which further cast a geopolitical shadow over this resource争夺 battle. It is reported that Norinco has made its position clear to the Congolese government, stating that as long as the absolute controlling stake is maintained, it is willing to maintain flexibility in the equity structure. The sources disclosed that Norinco's plan includes two key clauses： Firstly, it promises that the Congolese government can follow the cooperation model between Gecamines and China Luoyang Molybdenum to obtain a share of the mine's product profits based on the equity ratio; Secondly, in addition to the $900 million asset acquisition payment, an additional $500 million will be added to complete the expansion projects of the two mines. It is notable that Chemaf, as a long-term partner of the commodity giant Trafigura, submitted this plan to the Congolese government on behalf of Norinco last month. The core controversy of this transaction lies in the mining rights of Mutoshi mine held by Gecamines. The chairman of the company's board, Robert Lukamwa, has publicly stated that his $1 million offer is more feasible and explicitly opposed Norinco's acquisition.
In a letter to Gecamines, Chemaf accused the latter of "deliberately obstructing the sale process" and failing to present a competitive offer. The document indicated that any bidder would need to commit to repaying Chemaf approximately $920 million in debt and invest $500 million in development funds - this is precisely the financial framework of the Northern Industries plan. The debt burden is intensifying the urgency of the situation. The creditors on Chemaf's list, such as Trafigura Group, First Bank, and Trade Development Bank, have not received payment for 18 months and are eager for the deal to be concluded as soon as possible. If the Northern Industries plan can be implemented, it will immediately release $920 million for debt repayment. However, Gecamines is accused of not having implemented the acquisition funds yet, and its actual performance ability is questionable. Congolese Minister of Mines, Pakabamba, did not comment on this matter, but in early February, he told Reuters that the government was fully advancing the acquisition case. Analysts pointed out that this resource game spanning China, the United States, and Africa not only concerns the distribution pattern of Congo's copper and cobalt resources, but is also a microcosm of the global competition for strategic resources. Whether Northern Industries can break through through the equity restructuring plan will become an important indicator for observing the evolution of Chinese enterprises' investment strategies in African mining.
