Chinese Group to Invest $3,6bn in Zambian Copper Exploration, Mining Projects

LUSAKA, July 31 -- The Zambia government last week signed a deal with China's Zhonghui Mining Group, in terms of which the mining giant, reportedly the biggest Chinese private- sector investor in sub-Saharan Africa, will invest $3,6-billion in mining and exploration in Zambia's Copperbelt and North Western provinces during the next five years.

    The deal also contains an investment protection component.

    Zhonghui Mining is already exploring for copper in the North Western province and has applied for a licence to explore for the metal on the Copperbelt, says group president Charles Shi.

    The Chinese group's investment is expected to create about 34 000 jobs.

    Zambia's Commerce, Trade and Industry Minister, Felix Mutati, said at the signing ceremony: "I must admit that, as government, we are extremely impressed with the confidence by Zhonghui Mining Group. “The investment is happening at a time when many companies are curtailing investments while others are laying off workers."

    He added that the Zambia government had initiated reforms to “minimise the hurdles faced by foreign investors when they apply for business licences”. The reforms would also reduce the cost of doing business in the country.

    Zambia's Mines Minister, Maxwell Mwale, said that Zhonghui also intended to invest in new mines, a hydropower station and a water supply scheme, in Luapula, in northern Zambia. Details of these projects were not immediately available.

    (Source: miningweekly.com)