New Delhi, March 31 Lloyds Metals and Energy Ltd (LMEL) announced on Tuesday that it has acquired CHEMAF Group, based in the Democratic Republic of Congo (DRC), which is primarily involved in copper and cobalt mining, as it diversifies into critical minerals vital for the global electric vehicle battery supply chain.
This deal marks LMEL's bold entry into Africa's mineral-rich Democratic Republic of Congo (DRC), the world's leading cobalt producer and copper supplier, as India aggressively pursues overseas mining to secure raw materials for its green energy ambitions.
LMEL, a major producer of iron ore, did not disclose the deal size.
"In a major development, Lloyds Metals and Energy Ltd (LMEL) has announced the successful acquisition of the CHEMAF Group (CHEMAF), comprising Chemaf Resources Limited, Chemaf SA, and associated entities, which are leading companies in copper and cobalt mining and processing operating in the Democratic Republic of Congo (DRC)," the company said in a statement.
The acquisition was executed through Virtus Lloyds Minerals Holding (VLMH), a joint venture between a Lloyds Metals entity (49 per cent) and Virtus Minerals Inc, a US-headquartered mining investment company.
Located in the heart of the Katanga Copper Belt – one of the richest copper-cobalt geological zones in the world – the CHEMAF assets significantly enhance Lloyds Metals' presence in critical minerals essential to the global energy transition.
The DRC holds over 70 per cent of the world's cobalt reserves and is among the largest producers of copper globally.
Through VLMH, Lloyds Metals will operate and manage the acquired mining and processing assets and manage the entire value chain from mine development to off-take. Upon completion of ongoing expansion projects, the production capacity in the DRC is projected to reach approximately 100,000 tonnes per annum (TPA) of copper and 20,000 TPA of cobalt, with peak revenues estimated at USD 1.5 billion (approximately Rs 14,000 crore) annually.