Narrative
Full Description
Project narrative
On April 26, 2021, Eurasian Resources Group sold its equity stake in the Lonshi copper mine to JCHX Mining Construction Group Co., Ltd. Then, on May 28, 2022, China-Africa Fund for Industrial Cooperation Co., Ltd. (CAFIC or 中非产能合作基金有限责任公司) and Eunitial Mining Investment Limited (致元矿业) — a special purpose vehicle and wholly owned subsidiary of JCHX Mining Construction Group Co., Ltd. that is legally incorporated in Mauritius — signed a $20 million loan agreement for the Lonshi Copper Mining, Processing, and Smelting Project. The loan carries a 5-year maturity. Its interest rate and grace period are unknown. The loan is backed by a corporate guarantee from JCHX Mining Construction Group Co., Ltd. It is also collateralized against JCHX Mining Construction Group Co., Ltd.’s equity stake in Eunitial Mining Investment Limited. The purpose of the project is to construct mining, processing and smelting facilities at the Lonshi copper mine in Katanga Province of the Democratic Republic of the Congo, to the southeast of Ndola, Zambia. The mine produces high-grade oxide ore that has traditionally been transported to Zambia for processing at the SX/EW facility in Bwana. China Nerin Engineering Co., Ltd. and China Fifteenth Metallurgical Construction Group Co., Ltd. were the contractors responsible for implementation. The project was originally scheduled to commence in September 2021. However, the first batch of project personnel did not arrive on site until July 2021 and project implementation did not officially commence until April 2022. The project was ultimately completed and put into operation on September 20, 2023.
Staff comments
1. The Chinese project title is 刚果民主共和国Lonshi铜矿提项目 or 刚果（金）龙溪铜矿开发项目. 2. In 2019, the Chinese Government centralized the management of China-Latin America and Caribbean Industrial Investment and Cooperation Fund (CLAIFund) and China-Africa Fund for Industrial Cooperation Co., Ltd. (CAFIC), such that the two state-owned funds’ project appraisal and investment decisions were unified under the management of a single new company under SAFE, while continuing to operate under separate names. 80% of CAFIC is owned by SAFE’s wholly-owned arm Wutongshu Investment Platform. China Eximbank owns the remaining 20%. See https://www.caixinglobal.com/2019-02-19/exclusive-china-to-combine-africa-latin-america-investment-funds-101381418.html. 3. Sabwe Mining Sarl is the project company responsible for the Lonshi Copper Mining, Processing, and Smelting Project. Eunitial Mining Investment Limited owns Sabwe Mining Sarl through a special purpose vehicle known as Cayman Sky Pearl Exploration Limited.