Abu Dhabi’s IRH acquires majority stake in Congo’s tin producer for $367 million

The company continues to expand its operations in mining sector in Africa

International Resources Holding is a unit of Abu Dhabi's International Holding Company. Victor Besa / The National

International Resources Holding (IRH), a unit of International Holding Company (IHC), has entered into a definitive agreement to buy a majority stake in the Democratic Republic of Congo’s tin producer Alphamin Resources for $367 million as the Abu Dhabi-based company continues to expand its presence in Africa.

As part of the agreement, IRH, through a wholly owned subsidiary, is buying a 56 per cent stake in Alphamin from Tremont Master Holdings, paying C$0.70 per share, or about $367 million, the two companies said in a statement on Wednesday.

Alphamin, which is listed on Canada’s TSX Venture Exchange and the Johannesburg Stock Exchange, is one of the world's largest producers of tin that is used in electronics, manufacturing, and industrial applications.

“This acquisition strengthens IRH's position in the global industrial metals sector, adding a majority interest in a highly productive and strategically important tin asset to its portfolio,” the companies said.

IRH is part of 2PointZero, which was set up by IHC last year, with more than Dh100 billion ($27.2 billion) in assets.

The company has been expanding its operations globally, with a focus on energy transition minerals and resources such as copper, cobalt, nickel, lithium, 3T (tin, tantalum and tungsten), manganese and graphite.

Last year, IRH completed the acquisition of Mopani Copper Mines in Zambia, to expand its operations in the mining sector, for $1.1 billion. It also signed a joint venture agreement for mineral exploration ion Balochistan province of Pakistan in March.

Its other agreements include a collaboration with South Africa’s Public Investment Corporation, with a focus on unlocking value across the mining, green energy and transport and logistics sectors.

"Alphamin's strong production profile aligns with our strategy of securing interests in high-quality mining assets with long-term growth potential,” Ali Alrashdi, chief executive of IRH, said.

IHC, the largest listed company in the UAE, is on an acquisition spree. The conglomerate aims to double its asset base to Dh800 billion and hit the Dh200 billion annual revenue mark by the end of the decade, its chief executive Syed Basar Shueb told The National in an interview last month.

The UAE, the Arab world's second-largest economy, accounts for 60 per cent of IHC's Dh416.5 billion asset base as of the first quarter this year, while the rest is spread across the region and the markets beyond.