U.S. Consortium Negotiates $9 Billion Deal for 40% Stake in DRC's Cobalt Operations
A U.S.-backed consortium led by Orion Resource Partners is negotiating to acquire a 40% stake in Mutanda Mining and Kamoto Copper Company in the DRC. Valued at around $9 billion, this deal aims to reduce U.S. reliance on China's cobalt supply. However, it is contingent on resolving U.S. sanctions on businessman Dan Gertler, which currently hinder the acquisition. The DRC government supports sanctions relief as a condition for increasing Western investment, emphasizing the strategic importance of cobalt and copper for U.S. clean energy and defense sectors.
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The Orion Critical Minerals Consortium, supported by the U.S. International Development Finance Corporation, seeks to acquire a 40% stake in Mutanda Mining and Kamoto Copper Company in the Democratic Republic of Congo (DRC) for approximately $9 billion.
These operations are vital for U.S. access to cobalt and copper, essential for electric vehicles and renewable energy. The deal’s success hinges on resolving U.S. sanctions against businessman Dan Gertler, whose interests are tied to these mines.
The DRC government under President Félix Tshisekedi has publicly called for sanctions relief to facilitate this investment, highlighting the urgency given China's dominance in the cobalt market. The deal is currently in due diligence, with the potential to reshape U.S. supply chains in critical minerals.
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