Trafigura-Backed Congo Miner Seeks Buyer Amid Debt Woes
- Incomplete projects need new investment of up to $300 million
- Funding gap comes at time of low cobalt prices amid oversupply
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A mining company in the Democratic Republic of Congo backed by commodity trader Trafigura Group has put itself up for sale after a slump in the cobalt price left it struggling to finish key projects.
The attempted sale of Chemaf Resources Ltd. comes after the company’s ambitious expansion drive ran into financial trouble, leaving it in need of fresh investment. The firm is trying to build one of the biggest copper and cobalt mines in Congo, as well as two new processing plants, and last year arranged a $600 million loan from Trafigura. However, Bloomberg reported in August that the trading giant was seeking new funding for the development after it overshot its budget.