China to Lend Zambia Mining Firms $5 bln -Report

LUSAKA, May 12 (Reuters) - China will provide $5 billion in loans to private mining companies in Zambia as Chinese companies continue to increase their influence in Africa's top copper producer, President Rupiah Banda told state media on Wednesday.

Banda said the medium-term and long-term loans would be provided to private companies operating in Zambia under an agreement signed between the ministry of mines and the China Development Bank, the state-run ZANIS news agency said.

"The Zambian private sector should work with their Chinese counterparts in order to access resources from the $5 billion funding," Banda said at a signing ceremony for the lending facility in Livingstone, about 500 km south of capital Lusaka.

Banda said a number of Chinese companies already operating in the southern African country such as China Non-Ferrous Metals Mining Corp. (CNMC) had previously secured financing from the China Development Bank for investments in the country.

China on Tuesday said it would provide equity amounting to $1 billion to Zambia to help build a key power plant that would boost the country's electricity output by 600 mega when completed in 2017.

Copper mining is Zambia's economic lifeblood and the mines are a major employer in the country of 12 million people.

Foreign mining companies operating in Zambia include Canada's First Quantum Minerals (FM.TO), London-listed Vedanta Resources Plc (VED.L), Equinox Minerals (EQN.TO)(EQN.AX), Glencore International AG [GLEN.UL] of Switzerland and Metorex (MTXJ.J) of South Africa. (Reporting By Chris Mfula, Editing by Shapi Shacinda)