Abu Dhabi’s IRH buys controlling stake in Alphamin

Abu Dhabi’s International Resources Holding (IRH) is acquiring a majority stake in Alphamin Resources (TSX-V: AFM), in a move that would grant it access to the Bisie tin mine, one of the world’s largest and highest-grade deposits of the metal.

IRH, which has been eying Alphamin since November, will buy nearly 719 million common shares of the Canadian mining company, representing a 56% interest, from a unit of private equity firm Denham Capital. The transaction is valued at about C$503 million ($366 million), or C$0.70 per share.

Alphamin’s flagship asset is the Bisie tin complex in the Democratic Republic of Congo (DRC), which supplies around 6% of global tin annually. The mine also contains significant quantities of tantalum, tungsten and coltan, which are minerals critical to electronics and green technologies.

IRH said the acquisition strengthens its position in the global industrial metals sector by adding “one of the world’s largest and highest-grade tin producers” to its portfolio.

The company first invested in the sector in 2023 when it bought a majority stake in a Zambia’s Mopani copper mine for $1.1 billion. 

The deal caught US and Congolese officials off guard as they have been in talks to secure US access to critical minerals in exchange for Washington’s support in fostering peace in the region.

Global demand for tin, used in solder for electronics, renewable energy and semiconductors, is projected to rise more than 20% to 450,000 tonnes by 2035. Bisie’s output is ramping up to meet that demand, but the region’s long-running instability continues to pose risks.

Alphamin temporarily halted operations at Bisie earlier this year after the M23 rebel group advanced toward the mine, seizing the strategic town of Walikale and issuing direct threats. 

The group, allegedly supported by the Rwandan government, had previously taken key parts of eastern Congo, including Goma, a major mining logistics hub.

Operations resumed in late April, when Congolese and Rwandan officials signed a “declaration of principles” in Washington, committing to work on a peace agreement.

Since production began in 2019, Bisie has steadily increased output. The mine produced more than 17,000 tonnes of tin in 2023, and Alphamin plans to boost that to over 20,000 tonnes per year.