Virtus Minerals secures US backing for DRC cobalt and copper mines
In brief
- Virtus Minerals acquired Etoile and Mutoshi mines in the DRC with $700M+ investment backed by US State Department support.
- Chinese firms control roughly 72% of Congolese cobalt and copper output; the deal targets reducing that concentration.
- Mutoshi mine could supply up to 5% of global cobalt production once fully scaled.
- Reuters investigation in April 2026 revealed Virtus overstated mining experience on its website.
The acquisition and financing structure
Virtus Minerals purchased the Etoile and Mutoshi mines from DRC-based Chemaf SA for an upfront price of $30 million plus assumption of substantial existing debts. The total investment commitment exceeds $700 million, with roughly $475 million in debt financing from Orion Resource Partners. The US International Development Finance Corporation (DFC) is also involved in backing the deal.
Once scaled up, the combined operations target annual production of 75,000 tonnes of copper cathodes and 25,000 tonnes of cobalt hydroxide. The cobalt hydroxide figure represents production targets contingent on successful scaling and regulatory approval. For context, the 25,000-tonne target refers to cobalt hydroxide rather than cobalt metal equivalent, and global cobalt production currently stands at approximately 140,000 to 150,000 tonnes annually. The Mutoshi mine alone could supply up to 5% of global cobalt production.
Why this matters for global supply chains
Cobalt and copper are foundational materials for the batteries that power electric vehicles and energy storage systems supporting data centers. Currently, Chinese firms control roughly 72% of Congolese cobalt and copper output. The Washington Accord, announced in December 2025, was designed to establish a US-DRC strategic minerals partnership. This deal represents a tangible step toward that goal, offering Western manufacturers a more diversified supply chain.
The DRC holds the world's largest cobalt reserves. Reducing concentration risk matters for tech companies, battery makers, and governments seeking to build resilient supply chains independent of Beijing's influence.
Prior scrutiny
A Reuters investigation published in April 2026 revealed that Virtus had overstated its mining experience on its website. Given the company's history of misrepresenting its credentials, questions about whether Virtus can deliver on the $700M+ investment commitment and meet the 75,000-tonne annual production target are material. Execution risk remains a key factor in assessing whether this deal achieves its stated goals of diversifying global cobalt supply.
The company will face regulatory scrutiny from DRC authorities and ongoing oversight from its US government backers. Success hinges on Virtus's ability to operationalize these assets, secure permitting, and navigate the complex political and regulatory environment in the DRC.
