Chemaf has been seeking a buyer for months after a slump in cobalt prices left it struggling to finish key projects, including Mutoshi. The company said on Thursday it had agreed to a sale to Norin Mining, which would allow it to settle existing borrowings and address obligations to creditors.

Trafigura arranged a $600 million dollar loan for Chemaf in 2022 to finance the development of Mutoshi and the upgrade of its existing Etoile copper and cobalt operation. Chemaf said previously that it had about $690 million of debt as of September, including around $510 million drawn down from the loan arranged by Trafigura.

Gecamines learned about the deal through the press, and its board on Friday unanimously rejected the transaction, the company said in a statement.

As the lessor and owner, Gecamines “has a right of prior information and, more fundamentally, a right of approval in the event of a direct or indirect change of control,” it said.

Congo’s government has “already provided written support for the transaction” and Chemaf’s main subsidiary in the central African country now “looks forward to ongoing engagement” with Gecamines to secure the go-ahead from the state miner, Chemaf said in a statement late Monday.

Chemaf’s decision to put itself up for sale followed relief granted by a Congolese court that required the parent company to “take active steps to address the outstanding financial obligations” of the local unit, the firm said. The proposed sale to Norin Mining “will provide the capital to fund the completion” of the Mutoshi and Etoile projects, it said.

Trafigura declined to comment.

(By Michael J. Kavanagh and William Clowes)