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Abu Dhabi Minerals Company International Resource Holdings has purchased a majority stake in the tin mines of the Democratic Republic of the Congo, expanding its presence in Africa and highlighting its appetite for high-risk jurisdiction.
IRH, part of the vast UAE business empire, purchased a 56% stake in Toronto-listed Alphamin Resources for around $337 million from a subsidiary of US private equity group Denham Capital.
The company manages the huge Busytin mines in war-torn eastern Congo, which was forced to temporarily close earlier this year, causing a short surge in global tin prices. The business resumed last month.
The mines account for around 7% of the global tin production used in soldering, food cans and batteries, and the deal highlights the enthusiasm of the oil-rich Gulf countries to acquire a critical mineral foothold.
Sheikh Tanoon, the brother of the president of the United Arab Emirates, is one of Abu Dhabi’s most powerful royals. IRH entered the mining scene in 2023 when it purchased a majority stake in Zambia’s copper mine for $1.1 billion.
The company previously was involved in Dr. Congo’s gold trading business, but his parent, Syed Basar Shueb, chief executive of the international holding company, told Financial Times last year that IRH handed over to Dr. Congo’s government.
UAE President Sheikh Mohammed bin Zayed al Nahyan met twice with Dr. Congo-Congo-Congo-Congo-Congo-President Felix Tsisekedi on an official visit last year, and the United Arab Emirates expressed “deep concern” about the conflict in eastern Congo earlier this year.
As part of its contract with Alphamin, IRH will acquire “off-take rights” to trade some of the mine’s production, according to people close to the trade. The group is building a trading team of 60 people to process energy and metals.
IRH purchased shares from Denham’s subsidiary Tremont Master Holdings for $0.70 (51 US cents) per share.
The sale surprised us and Congolese officials who were negotiating a deal to ensure access to critical minerals in order to bring peace from Washington to the region.
Maritz Smith, CEO of Alphamin, said there was no “engagement” with IRH yet. “The mines are on track to reopen,” he said. He mentioned the resumption of operations in May.
The area around the mine is broken by the conflict as the M23 rebel group, understood to be supported by Rwanda, had been occupying Dr. Congo’s eastern territory since January.
Earlier this year, the US helped Rwandan-backed rebels withdraw from areas near the Busy mines and broker the agreement that allowed them to reboot.
IRH CEO Ali Alrashdi said in a statement that the deal “aligns with its strategy of ensuring benefits on high-quality mining assets with long-term growth potential.”
