Abu Dhabi minerals firm buys DR Congo tin mine stake from Denham arm | USAEMALL.com

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Abu Dhabi minerals company International Resources Holding has bought a majority stake in a tin mine in the Democratic Republic of Congo, expanding its presence in Africa and underscoring its appetite for high-risk jurisdictions. 

IRH, part of the sprawling business empire of United Arab Emirates national security adviser Sheikh Tahnoon bin Zayed al-Nahyan, bought a 56 per cent stake in Toronto-listed Alphamin Resources from a subsidiary of US private equity group Denham Capital for about $367mn.

The company controls the giant Bisie tin mine in the war-torn eastern DR Congo, which was forced to close temporarily earlier this year, causing a brief surge in global tin prices. It resumed operations last month. 

The mine accounts for about 7 per cent of global tin production, which is used in soldering, food cans and batteries, and the deal highlights the eagerness of oil-rich Gulf countries to gain a foothold in critical minerals.

Sheikh Tahnoon, a full brother of the UAE’s president, is one of Abu Dhabi’s most powerful royals. IRH burst on to the mining scene in 2023 when it bought a majority stake in a Zambian copper mine for $1.1bn. 

The company was previously involved in a gold trading operation in the DR Congo, but Syed Basar Shueb, the chief executive of its parent, International Holding Company, told the Financial Times last year that IRH had handed that over to DR Congo’s government.

UAE president Sheikh Mohammed bin Zayed al-Nahyan met DR Congo president Felix Tshisekedi twice last year on official visits, and the UAE expressed “deep concern” over the conflict in eastern DR Congo earlier this year. 

As part of the deal with Alphamin, IRH will gain “offtake rights” that will allow it to trade some of the mine’s output, according to people close to the transaction. The group has been building up its 60-person trading team to handle energy and metals.

IRH bought the shares from Tremont Master Holdings, a subsidiary of Denham, for C$0.70 (51 US cents) per share, a discount of about 25 per cent compared with Alphamin’s average share price over the past month.

The sale came as a surprise to US and Congolese officials who were negotiating a deal to secure US access to critical minerals, in return for support from Washington in bringing peace to the region.

Maritz Smith, chief executive of Alphamin, said that he had not had “any engagement” with IRH yet. “The mine restart has gone well,” he said, referring to the resumption of operations in May. 

The region around the mine has been wracked by conflict, as the M23 rebel group that is understood to be backed by Rwanda has occupied a swath of territory in eastern DR Congo since January. 

Earlier this year, the US helped to broker an agreement that led to Rwandan-backed insurgents withdrawing from the area near the Bisie mine, allowing it to restart, according to people close to the talks.  

Ali AlRashdi, chief executive of IRH, said in a statement that the deal “aligns with our strategy of securing interests in high-quality mining assets with long-term growth potential”.