KINSHASA, Aug 26 (Reuters) - The government of the Democratic Republic of Congo is opposed to a proposal by Chemaf SA to sell its copper and cobalt mines in the country to China's Norin Mining, according to a document seen by Reuters.
Chemaf, a long-time partner of commodities trader Trafigura, said in June it had agreed to sell its mines in Congo to the unit of Chinese state-backed defence and industrial giant, China North Industries Corp (CNIGC.UL) (Norinco).
Chemaf put itself up for sale last year due to a cash crunch that was stalling the expansion of its Etoile and Mutoshi projects in Congo as cobalt prices slumped.
Kizito Pakabomba, Congo's mines minister, said the deal is in breach of state miner Gecamines' lease agreements with Chemaf and recommended that the transaction be stopped, according to the minutes of a council of ministers' meeting on Friday seen by Reuters.
The council of ministers adopted the ministry of mines' recommendation that the transaction be halted.
"Considering the flagrant violation of the clauses of the farm-out contract between Gecamines and Chemaf, it was recommended that the current transaction be halted following Gecamines' opposition," the minutes said.