Narrative
Full Description
Project narrative
On November 6, 2016, Metorex (Proprietary) Limited — a limited liability company incorporated in South Africa that focuses on base metal mining — entered into an $100 million term loan facility agreement with the China Development Bank Corporation to support its working capital requirements. The loan carried a maturity of 5 years. Its other borrowing terms are unknown. However, it is known that Jinchuan Group Co., Ltd (金川集團股份有限公司) issued a corporate repayment guarantee in support of the loan.
Staff comments
1. Metorex (Proprietary) Limited is an indirect wholly-owned subsidiary of Jinchuan Group International Resources Co. Ltd. Metorex (Proprietary) Limited and its subsidiaries are known as the Metorex Group. Metorex Group was acquired by Jinchuan Group Co., Ltd. (“Jinchuan Group”), a state-owned enterprise established in the People’s Republic of China and a substantial shareholder of Jin Rui Mining Investment Limited, through the making of a public takeover offer in July 2011 and the takeover and privatisation was completed on January 16, 2012 upon which Jinchuan Group acquired the entire issued share capital of Metorex. Prior to the acquisition by Jinchuan Group, Metorex Group was listed on the Johannesburg Stock Exchange and the London Stock Exchange since December 1999. Metorex Group was delisted from the London Stock Exchange in March 2009 and delisted from the Johannesburg Stock Exchange in January 2012 as a result of Jinchuan Group’s takeover and privatisation of Metorex Group. 2. The final repayment date of the loan facility was to be the date falling on the last day of a 36 month period from the date of the first utilization of such facility. Utilization was to take place within 24 months from the date of the signing of the facility agreement. 3. Metorex Group has five mines: the Chibuluma Copper Mine in Zambia, the Ruashi Copper and Cobalt Mine, the Kinsenda Copper Mine, the Musonoi Copper and Cobalt Mine and the Lubembe Copper Mine in the Democratic Republic of the Congo. 4. Jinchuan Group Co., Ltd, founded in 1958, is a state-owned enterprise with its majority interest held by the People’s Government of Gansu Province. Jinchuan Group specializes in mining, concentrating, metallurgy, chemical engineering and further downstream processing. Jinchuan Group is widely recognized as a renowned mining corporation and is the third largest nickel producer and fourth largest cobalt producer in the world and the third largest copper producer in China. Jinchuan Group ranks no. 369 in “Fortune” Global 500 in 2020.