Abu Dhabi’s IRH spends $500M to control Alphamin tin

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

IRH, which has been eying Alphamin since November, plans to 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 $503 million (US$366 million), or 70¢ per share.

The Bisie tin complex in the Democratic Republic of Congo (DRC), Alphamin’s main asset, 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. However, the company lowered its output forecast this year because of local unrest. 

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 mine produced more than 17,000 tonnes of tin in 2023 and Alphamin plans to boost output to more than 20,000 tonnes.

Shares in Alphamin fell 7.7% on Wednesday afternoon in Toronto to 84¢ apiece, valuing the company at $1.07 billion. The stock has traded in a 52-week range of 40¢ to $1.32. 

Leadership tie

IRH is a subsidiary of International Holding Co., a prominent Abu Dhabi-based conglomerate that is chaired by Sheikh Tahnoon bin Zayed Al Nahyan. Tahnoon is the United Arab Emirate’s national security adviser and a member of the ruling Al Nahyan family. While IRH is not a government-owned company in the traditional sense, it is closely linked to the Abu Dhabi leadership. 

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, which began output in 2019, 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 Congolese and Rwandan officials signed a “declaration of principles” in Washington, committing to work on a peace agreement.