Trafigura-Backed Congo Cobalt Miner Scraps Sale to Chinese Firm

Raw cobalt at the Etoile mine, operated by Chemaf , in Katanga province near Lubumbashi, the Democratic Republic of Congo.Photographer: Lucien Kahozi/Bloomberg
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Copper and cobalt producer Chemaf Resources Ltd. has abandoned a deal to sell itself to Norin Mining Ltd., in a potential victory for US efforts to loosen China’s grip on mineral-supply chains.

Chemaf, which is backed by Trafigura Group, informed creditors that a proposed takeover by a unit of Chinese state-owned arms manufacturer Norinco Group won’t go ahead as the transaction hasn’t received the necessary approvals from the Democratic Republic of Congo, according to a person familiar with the matter.