Democratic Republic of Congo's state miner Gecamines said on Monday it would not approve the sale of cobalt miner Chemaf SA and its Congolese assets to Chinese miner Norin Mining.
Gecamines leases these assets to Chemaf, which on Thursday said it had agreed the sale to a unit of Chinese state-backed China North Industries Corp (Norinco) to settle debts largely funded by Chemaf's long-time partner, commodities trader Trafigura.
In a statement, Gecamines said it had the right of approval and its board had voted to reject the deal.
Chemaf did not immediately respond to a request for comment. When it announced the sale, it said the deal was still subject to conditions including the approval of Gecamines and Chinese regulatory approvals.
Cash crunch
The family-owned copper and cobalt miner, offered itself for sale last year due to a cash crunch that was stalling the expansion of its Etoile and Mutoshi projects in DR Congo as cobalt prices slumped.
Chinese miners, most of which are state-backed, have become the biggest investors in DR Congo as the world's second-largest economy aggressively pursues copper and cobalt supplies for its rapidly expanding electric vehicle industry.
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