Blab Politics
U.S. Secures First Major Congo Cobalt Deal in a Decade, Expands Domestic Rare-Earth Processing
When the United States announced a $700 million investment in the Democratic Republic of the Congo (DRC) late March 2026, it marked the first time in a decade that an American firm had secured a controlling interest in a cobalt mine outside the United States.
The deal, brokered by the American mining company Virtus Minerals, is backed by the U.S. International Development Finance Corporation (DFC) and a $475 million debt package from Orion Resource Partners. Virtus now holds a majority stake in Chemaf, a Congolese producer that operates the Étoile mine in Lubumbashi and the Mutoshi mine in Kolwezi.
The Mutoshi operation is projected to supply up to 5 % of global cobalt production, while the combined Chemaf mines could yield 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide each year. According to reports, the DRC accounts for more than 80 % of world cobalt output, and roughly 80 % of that metal is currently controlled by Chinese companies. The U.S. acquisition therefore represents the first U.S.‑owned rare‑earth or cobalt operation in the DRC since the Washington Accord was signed in December 2025.
The investment is part of a broader U.S. strategy to treat critical minerals as national‑security assets. President Donald Trump issued an executive order in March 2026 that expands the definition of critical minerals to include copper, uranium, gold, and potash, and authorizes the use of emergency powers to streamline permitting and increase domestic production. The Virtus investment is the first tangible outcome of that order.
In a related move, the Department of War’s Office of Strategic Capital (OSC) signed a conditional $725 million loan commitment with Energy Fuels, a company that operates the White Mesa Mill in Utah. The facility is the only commercial‑scale rare‑earth separation plant in the United States. The loan, which is contingent on Energy Fuels meeting financial, legal, and technical due‑diligence requirements, is intended to expand the mill’s capacity and reduce U.S. reliance on Chinese‑controlled rare‑earth supply chains.
The Department of Energy has also increased its own funding for critical‑mineral research. In mid‑June, the DOE’s Office of Critical Minerals and Energy Innovation announced a $15 million grant to two regional consortia. The first consortium, based at the University of Nevada, Reno, will survey sedimentary formations and mine waste in the Pacific Coast and Basin and Range regions to build a comprehensive database of critical‑mineral resources. The second consortium, led by Georgia Tech Research Corp., will examine mineral deposits along the Atlantic seaboard plain, including brownfield sites, to identify potential sources of cobalt, bauxite, kaolin, and other critical materials.
These initiatives are designed to create a more resilient domestic supply chain for materials used in electric‑vehicle batteries, advanced electronics, and defense systems. The U.S. has long relied on China for many of these metals, a dependence that has prompted concerns about supply‑chain security.
The Virtus deal has attracted attention from both industry and policy circles. The Wall Street Journal reported on March 31 that the acquisition was a “major win” for the Trump administration in its effort to counter Chinese dominance in the rare‑earth market. The deal also underscores the role of U.S. development finance in securing overseas resources.
As of now, Virtus is scaling up operations at both mines, while Energy Fuels works to satisfy the OSC’s loan conditions. The DOE consortia are in the early stages of fieldwork and data collection. No definitive production dates have been announced, but the projects are expected to become operational in the next two to three years.
The U.S. government’s focus on critical minerals reflects a shift toward treating these resources as strategic assets rather than commodities. The combination of overseas mining investment, domestic processing expansion, and research funding signals a coordinated effort to reduce dependence on China and secure the materials that underpin modern technology and national defense.
The next steps for the Virtus project include finalizing permits in the DRC, completing infrastructure upgrades, and beginning extraction at the Mutoshi site. Energy Fuels must close the OSC loan by meeting the outlined due‑diligence milestones. The DOE consortia will publish preliminary findings from their surveys later this year. The outcomes of these projects will determine how quickly the United States can increase its share of global cobalt and rare‑earth production.
The U.S. has positioned itself to play a larger role in the global critical‑mineral market, but the full impact of these initiatives will depend on the pace of development and the ability of U.S. companies to navigate complex international and domestic regulatory environments.
The deal, brokered by the American mining company Virtus Minerals, is backed by the U.S. International Development Finance Corporation (DFC) and a $475 million debt package from Orion Resource Partners. Virtus now holds a majority stake in Chemaf, a Congolese producer that operates the Étoile mine in Lubumbashi and the Mutoshi mine in Kolwezi.
The Mutoshi operation is projected to supply up to 5 % of global cobalt production, while the combined Chemaf mines could yield 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide each year. According to reports, the DRC accounts for more than 80 % of world cobalt output, and roughly 80 % of that metal is currently controlled by Chinese companies. The U.S. acquisition therefore represents the first U.S.‑owned rare‑earth or cobalt operation in the DRC since the Washington Accord was signed in December 2025.
The investment is part of a broader U.S. strategy to treat critical minerals as national‑security assets. President Donald Trump issued an executive order in March 2026 that expands the definition of critical minerals to include copper, uranium, gold, and potash, and authorizes the use of emergency powers to streamline permitting and increase domestic production. The Virtus investment is the first tangible outcome of that order.
In a related move, the Department of War’s Office of Strategic Capital (OSC) signed a conditional $725 million loan commitment with Energy Fuels, a company that operates the White Mesa Mill in Utah. The facility is the only commercial‑scale rare‑earth separation plant in the United States. The loan, which is contingent on Energy Fuels meeting financial, legal, and technical due‑diligence requirements, is intended to expand the mill’s capacity and reduce U.S. reliance on Chinese‑controlled rare‑earth supply chains.
The Department of Energy has also increased its own funding for critical‑mineral research. In mid‑June, the DOE’s Office of Critical Minerals and Energy Innovation announced a $15 million grant to two regional consortia. The first consortium, based at the University of Nevada, Reno, will survey sedimentary formations and mine waste in the Pacific Coast and Basin and Range regions to build a comprehensive database of critical‑mineral resources. The second consortium, led by Georgia Tech Research Corp., will examine mineral deposits along the Atlantic seaboard plain, including brownfield sites, to identify potential sources of cobalt, bauxite, kaolin, and other critical materials.
These initiatives are designed to create a more resilient domestic supply chain for materials used in electric‑vehicle batteries, advanced electronics, and defense systems. The U.S. has long relied on China for many of these metals, a dependence that has prompted concerns about supply‑chain security.
The Virtus deal has attracted attention from both industry and policy circles. The Wall Street Journal reported on March 31 that the acquisition was a “major win” for the Trump administration in its effort to counter Chinese dominance in the rare‑earth market. The deal also underscores the role of U.S. development finance in securing overseas resources.
As of now, Virtus is scaling up operations at both mines, while Energy Fuels works to satisfy the OSC’s loan conditions. The DOE consortia are in the early stages of fieldwork and data collection. No definitive production dates have been announced, but the projects are expected to become operational in the next two to three years.
The U.S. government’s focus on critical minerals reflects a shift toward treating these resources as strategic assets rather than commodities. The combination of overseas mining investment, domestic processing expansion, and research funding signals a coordinated effort to reduce dependence on China and secure the materials that underpin modern technology and national defense.
The next steps for the Virtus project include finalizing permits in the DRC, completing infrastructure upgrades, and beginning extraction at the Mutoshi site. Energy Fuels must close the OSC loan by meeting the outlined due‑diligence milestones. The DOE consortia will publish preliminary findings from their surveys later this year. The outcomes of these projects will determine how quickly the United States can increase its share of global cobalt and rare‑earth production.
The U.S. has positioned itself to play a larger role in the global critical‑mineral market, but the full impact of these initiatives will depend on the pace of development and the ability of U.S. companies to navigate complex international and domestic regulatory environments.
