Nagpur: An international corporate buyout with a Gadchiroli connect is being hailed as a huge victory for Trump administration in the US as it also brings an advantage for India. Lloyds Metals and Energy Limited (LMEL) — which runs an iron ore mine in Gadchiroli — has acquired CHEMAF Group, a copper and cobalt mining company in the Democratic Republic of Congo (DRC). The acquisition is pegged to have opened up major non-Chinese source, especially cobalt for US, while also benefitting India. Cobalt is a key mineral in defence and electric vehicle sectors. LMEL’s copper venture in Congo entails an investment of $250 million, which includes the takeover price too. LMEL has allied with a US company, Virtus Mineral Group, forming a new entity which did the acquisition. This entity, Virtus Lloyds Minerals Holdings (VLMH), outmanoeuvred a Chinese state-owned entity, which was also eyeing CHEMAF’s business. The group operates in Katanga mining belt, one of the world’s largest reserves for copper and cobalt. Following the deal, American under-secretary of state Jacob Helberg wrote on X: “US firm Virtus’ acquisition of CHEMAF mines in DRC is HUGE for America and people of DRC. Under President Trump’s leadership, US is back competing in the DRC’s mining sector. The partnership is linchpin to American economic security.” LMEL’s subsidiary, Lloyds Global Resources FZCO (LGRF),joined hands with Virtus Minerals to purchase CHEMAF, and now had a 49% stake in the Congo company. CHEMAF’s current capacity is to produce 20,000 tonne per annum (TPA) of copper cathodes and 4,000 TPA of cobalt. An expansion will take it further to 50,000 TPA of copper and 16,000 TPA of cobalt. After acquisition, production is projected to go to 1 lakh TPA of copper and 20,000 TPA of cobalt. At peak productio, LMEL’s total production of the critical metals is projected to reach 1400 crore. LMEL said the deal aligns with the aim to secure a non-Chinese supply of minerals that are essential for EV, defence and strategic manufacturing. Sources said as US sees benefit, the Indian partner too would secure its supplies.
