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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.
&nbsp;&nbsp;&nbsp; The deal also contains an investment protection component.
&nbsp;&nbsp;&nbsp; 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.
&nbsp;&nbsp;&nbsp; The Chinese group's investment is expected to create about 34 000 jobs.
&nbsp;&nbsp;&nbsp; Zambia's Commerce, Trade and Industry Minister, Felix Mutati, said at the signing ceremony: &quot;I must admit that, as government, we are extremely impressed with the confidence by Zhonghui Mining Group. &ldquo;The investment is happening at a time when many companies are curtailing investments while others are laying off workers.&quot;
&nbsp;&nbsp;&nbsp; He added that the Zambia government had initiated reforms to &ldquo;minimise the hurdles faced by foreign investors when they apply for business licences&rdquo;. The reforms would also reduce the cost of doing business in the country.
&nbsp;&nbsp;&nbsp; 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.
&nbsp;&nbsp;&nbsp; (Source: miningweekly.com)