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Overview

CITIC Bank provides $45 million buyer’s credit for CDM Smelter Project

Commitments (Constant USD, 2023)$46,428,022
Commitment Year•2020Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 19, 2020
Last repayment (originally scheduled)
Jun 18, 2023

Geospatial footprint

Map overview

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This project supported CDM’s copper and cobalt smelter and other activities in the city of Lubumbashi. More detailed locational information can be found at https://www.openstreetmap.org/way/1062892971 and https://www.openstreetmap.org/way/681942664.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • China CITIC Bank Corporation Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Congo Dongfang International Mining SAS

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

CITIC Bank provides $45 million buyer’s credit for CDM Smelter Project

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On June 19, 2020, the the Hangzhou Branch of China CITIC Bank and Congo Dongfang International Mining SAS (CDM) — a special purpose vehicle and wholly-owned subsidiary of Zhejiang Huayou Cobalt Co., Ltd. — signed a $45 million buyer’s credit agreement for the CDM Smelter Project. The loan carried a 3-year maturity (final maturity date: June 18, 2023), but its other borrowing terms are unknown. It is known that the loan was backed by a Sinosure credit insurance policy. The borrower was expected to use the proceeds of the loan to support its copper and cobalt smelter and other activities in the city of Lubumbashi.

Staff comments

1. The Chinese project title is 浙江华友卡松坡湿法冶炼项目. 2. GENILAND sued CDM for encroachment upon the mining area corresponding to CDM’s Mining Concession No. 527 on its long-term lease concession (land), and claimed compensation for damages of $22.65 million. According to a judgment rendered by the court of Democratic Republic of the Congo (DRC), CDM was to pay damages and penalties totaling $9,935,084 to GENILAND. However, CDM filed an appeal against the judgment