NewsLloyds Metals Completes USD 30 Million Acquisition of CHEMAF Group's Copper and Cobalt Operations in DRCLloyds Metals Completes USD 30 Million Acquisition of CHEMAF Group's Copper and Cobalt Operations in DRC
Lloyds Metals and Energy Limited completed the acquisition of 100% equity stake in CHEMAF Group Limited for USD 30 million through joint venture Virtus Lloyds Minerals Holding. The acquisition includes copper and cobalt mining operations in DRC's Katanga Copper Belt with current capacity of 20,000 TPA copper and 4,000 TPA cobalt, plus expansion projects targeting 50,000 TPA copper and 16,000 TPA cobalt. Combined with existing operations, the group expects total production capacity of 100,000 TPA copper and 20,000 TPA cobalt.
*this image is generated using AI for illustrative purposes only.
Lloyds Metals & Energy has successfully completed a major strategic acquisition in the Democratic Republic of Congo's mineral-rich Katanga Copper Belt. The company announced on 30th March, 2026, that its step-down subsidiary has acquired 100% equity stake in CHEMAF Group Limited for up to USD 30 million, marking a significant expansion into critical minerals mining.
Acquisition Structure and Partnership
The acquisition was executed through Virtus Lloyds Minerals Holding (VLMH), a Cayman Islands incorporated joint venture entity. The ownership structure demonstrates a strategic international partnership:
| Entity | Ownership Percentage |
|---|---|
| Lloyds Global Resources FZCO (LGRF): | 49% |
| Virtus Minerals Group, USA: | 51% |
LGRF, a wholly owned subsidiary of Lloyds Metals and Energy Limited, holds the minority stake in VLMH, which serves as the investment holding entity for copper and cobalt asset acquisition and development in the DRC.
CHEMAF Group Assets and Operations
CHEMAF Group Limited comprises Chemaf Resources Limited, Chemaf SA, and associated entities operating in the Democratic Republic of Congo since 2002. The group's operations are strategically located in the Katanga Copper Belt, recognized as one of the world's richest geological zones for copper and cobalt.
Current Production Capacity
| Facility | Copper Production | Cobalt Production |
|---|---|---|
| Etoile Processing Facility: | 20,000 TPA Copper Cathodes | 4,000 TPA Cobalt |
Expansion Projects
The acquisition includes the advanced-stage Mutoshi mine development project, which will significantly enhance production capabilities:
| Project Phase | Copper Capacity | Cobalt Capacity |
|---|---|---|
| Mutoshi Expansion: | 50,000 TPA | 16,000 TPA |
Strategic Significance and Market Position
The transaction aligns with the US-DRC Strategic Partnership Agreement signed on 4th December, 2025, promoting cooperation in critical minerals including copper, cobalt, lithium, and tantalum. This partnership positions the VLMH joint venture within the framework of US-DRC strategic cooperation, providing preferential access to critical minerals.
CHEMAF Group holds more than 50 mining permits and exploration licenses across the DRC. The company reported a turnover of 154 million USD for Calendar Year 2025, demonstrating operational scale and market presence.
Combined Group Production Outlook
With this acquisition, Lloyds Metals and Energy Limited's total production capacity in the DRC is expected to reach significant levels upon completion of ongoing expansion projects:
| Asset Category | Copper Capacity (TPA) | Cobalt Capacity (TPA) |
|---|---|---|
| CHEMAF - Current Operations: | 20,000 | 4,000 |
| CHEMAF - Planned Expansion: | 50,000 | 16,000 |
| Existing DRC Operations: | 30,000 | - |
| Total Group Capacity: | 100,000 | 20,000 |
Regulatory Approvals and Compliance
The Government of the Democratic Republic of Congo, through its Ministry of Mines, has approved the change of control in CHEMAF Group. Congolese law requires governmental approval for changes of control in entities holding mining permits. No further governmental or regulatory approvals are pending for the completion of this transaction.
The acquisition represents the first major transaction executed under the VLMH framework and establishes Lloyds Metals and Energy Limited as the designated operator of mining and processing assets, managing the full spectrum of operations including mine development, processing, and offtake.
Historical Stock Returns for Lloyds Metals & Energy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.52% | +2.08% | +3.14% | +2.06% | -1.28% | +125.76% |
How will the planned 100,000 TPA copper and 20,000 TPA cobalt capacity position Lloyds against major global producers like Glencore and Freeport-McMoRan?
What are the expected capital expenditure requirements and timeline for completing the Mutoshi expansion to reach the projected 50,000 TPA copper capacity?
How might potential changes in US-China trade relations affect the strategic value of this US-DRC partnership framework for critical minerals?
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