Chinese Firm to Invest $3.6bn in Zambian Copper Projects

LUSAKA, July 24 -- A Chinese firm plans to invest about $3.6 billion in copper exploration and mining in Zambia, reflecting growing Chinese interest in the country's mineral wealth, a senior investment official said on Wednesday.

    Zambia Development Agency (ZDA) Spokeswoman Margaret Chimanse said Zambia and Zhonghui Mining Group signed an investment agreement on Tuesday.

    "The $3.6 billion will be invested by Zhonghui in the first five years (from 2009) and it is likely to be increased depending on economic factors affecting the copper industry," Chimanse told Reuters.

    She said the Chinese firm also plans to construct a major copper smelter in Kitwe, 350 km (217 miles) north of the capital Lusaka, and that exploration of minerals by Zhonghui in the Northwestern and Copperbelt provinces of Zambia had already started.

    Industry officials said the smelter's capacity could be 300,000 tonnes per year.

    Chimanse said Zhonghui Mining Group would set up projects to be implemented by its Zambia-registered subsidiaries for copper mining and exploration in the southern African country.

    "The total number of jobs to be created directly by all the projects is 32,425. The project for copper refining will create 1,200 jobs," Chimanse said.

    The Chinese are currently developing mining infrastructure in Zambia and in March commissioned another 300,000 tonnes per year copper smelter in Chambishi, where up to 50 Chinese companies will begin to operate, under a separate $900 million programme.

    Zambian authorities are waiving a 25% customs duty on imported equipment, 16.5 percent value added tax and several other taxes for Chinese companies investing in the Chambishi economic zone.

    (Source: Reuters)