Creditors Take 70% Haircut on Chemaf Debt
Virtus Minerals and Lloyds Metals completed the acquisition of Congolese copper-cobalt miner Chemaf SA after creditors led by Trafigura accepted deep losses.
Updated on Nov. 4, 2026 in Corporate Finance
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Creditors led by Trafigura Group took a haircut of about 70% on the debt of Chemaf SA. Virtus Minerals Inc. and Lloyds Metals and Energy Ltd. have completed the acquisition of the Democratic Republic of Congo miner.
Why it matters
The deal marks the first acquisition by an American firm in the Democratic Republic of Congo since Washington and Kinshasa signed a strategic partnership in December. Congo is the world's top source of battery material cobalt and the second-biggest copper producer, making control of its mining assets strategically significant.
Creditors took a haircut of about 70% on Chemaf's $804 million debt, with Lloyds Metals estimating a cash settlement of $250 million or less. The shares changed hands for $30 million, and Trafigura declined to comment on the terms.
The players
Trafigura Group
A global commodities trading company that arranged and syndicated the $600 million loan underlying most of Chemaf's debt.
Virtus Minerals Inc.
An American mining company that holds a 51% ownership stake in Chemaf after completing the acquisition.
Lloyds Metals and Energy Ltd.
An Indian mining and energy company that co-acquired Chemaf and expects its plants to produce refined copper next year.
Orion Resource Partners
An investment firm whose CEO, Oskar Lewnowski, said a potential financing deal for Chemaf is still possible.
The details
Virtus Minerals Inc., which holds a 51% stake, and Lloyds Metals and Energy Ltd. bought Chemaf SA. The buyers are funding completion of the Mutoshi mine and expansion of Etoile operations while assuming Chemaf's substantial liabilities. The bulk of the debt stems from a $600 million loan arranged and syndicated by Trafigura in 2022.
Timeline
2022: Trafigura arranges and syndicates the $600 million Chemaf loan.
2023: Chemaf's former owners put the company up for sale, and a deal with a Norinco unit is abandoned after Congo withholds approvals.
December 2025: Washington and Kinshasa sign a strategic partnership.
Earlier in 2026: Lloyds and Virtus complete the Chemaf acquisition.
Market Dynamics
The acquisition is the first American corporate deal in the Democratic Republic of Congo following the December strategic partnership between Washington and Kinshasa. It also reflects a broader pattern in which Western and allied firms compete for control of Congo's cobalt and copper supply.
Investors in global cobalt and copper supply chains may see shifts in company ownership and financing structures as foreign buyers take control of Congolese mining assets. Shareholders and creditors of distressed mining firms should note how steep debt haircuts can be when restructurings proceed.
The takeaway
Distressed mining assets can change hands at steep discounts when debt is restructured, and buyers who fund completion of projects may gain control despite heavy legacy liabilities. Watch for follow-on financing and production milestones at Chemaf's Mutoshi and Etoile operations.
What happens next
Lloyds Metals expects Chemaf's plants to start producing refined copper next year, and a potential financing deal for Chemaf remains under discussion.
Further reading
For related coverage of how debt restructurings reshape ownership, explore Corporate Finance.
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