Abu Dhabi-based mining company International Resource Holding (IRH) has acquired a controlling stake in tin miner Alphamin for C$503.3m (R6.56bn), as the United Arab Emirates (UAE) ramps up its investment in Africa’s critical minerals.
IRH, the mining investment arm of Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), has had its eyes on Africa’s vast critical minerals reserves for the past few years, with more of such deals expected in the future.
At the end of 2023, the group outbid Sibanye-Stillwater for a controlling 51% stake in Zambia’s Mopani Copper mines, in a deal worth $1.1bn (R19.5bn).
In October, IRH signed a memorandum of agreement with SA’s state-owned Public Investment Corporation in a bid to improve the efficiency of SA mining operations.
IHC is chaired by a member of the ruling family, Sheikh Tahnoon bin Zayed al-Nahyan, and the move comes as sovereign wealth funds and other asset allocators aligned with governments look to diversify their income streams away from oil.
In a statement on Tuesday, IRH said the latest acquisition strengthened its position in the global industrial metals sector through the addition of a “highly productive and strategically important tin asset”.
Alphamin owns 84.55% of Bisie, the world’s third-largest tin mine, with the remaining shares held by Democratic Republic of Congo (DRC) government and SA’s Industrial Development Corporation.
“Alphamin’s strong production profile aligns with our strategy of securing interests in high-quality mining assets with long-term growth potential,” said IRH CEO Ali Alrashdi.
In its latest commodity markets outlook, the World Bank hailed tin as the only base metal whose price is expected to post modest gains over the next two years, thanks to tightening supply and a limited pipeline of mining projects.
The price of tin is expected to rise by more than 3% next year and 1.6% in 2027, amid the growth of the electric vehicle market, given the metal’s critical applications in battery technology and vehicle electronics.
Alphamin said on Thursday that it was advised by its 57% majority shareholder Tremont Master Holdings that it had entered into a definitive agreement for the sale of 718,990,967 Alphamin shares, representing about 56% of its shares, to IRH at C$0.70 per share.
The agreement is subject to certain completion adjustments that may reduce the total consideration.
The transaction is conditional on the receipt of regulatory and internal corporate approvals. The board of directors of Alphamin is evaluating the effect, if any, of the proposed transaction on the company, it said.
Tremont chair Rob Still said: “Following Tremont’s 12-year history in exploring, evaluating and then building and operating the Bisie mine, we are now pleased to transfer our ownership stake to another long-term investor who shares our vision for the operation and our commitment to the region.”
In recent months, Alphamin has flagged the conflict in DRC as a threat to its outlook even as it reported improved earnings for the year to end-December.
The Bisie mine was forced to halt operations in March after Rwanda-backed M23 rebels advanced into a nearby town. That led the group to lower its full-year guidance from 20,000 tonnes to 17,500 tonnes after reporting an 18% drop in tin output for the first quarter of 2025.
Operations at Bisie resumed in April after the insurgents withdrew from the area, but the company said at the time it was facing “unprecedented levels of uncertainty” as the war continued.
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