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Overview

SML provides $22 million shareholder loan for Mabende Copper Leach Plant Construction Project

Commitments (Constant USD, 2023)$23,843,992
Commitment Year2012Country of ActivityDemocratic Republic of the CongoDirect Recipient Country of IncorporationDemocratic Republic of the CongoOverseas JurisdictionZambiaSectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 20, 2012
Start (actual)
Jan 1, 2013
End (actual)
Feb 10, 2014

Geospatial footprint

Map overview

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The purpose of the project was to construct a copper leach plant -- with annual production capacity of 20,000 tons of 99.95% cathode copper — in Lwisha with the ores from the Mabende copper mine in the Democratic Republic of the Congo (DRC). More detailed locational information can be found at https://www.openstreetmap.org/way/641463143 and https://www.google.com/maps/place/Mabende+Mine/@-11.1387382,27.4501852,17z/data=!3m1!4b1!4m6!3m5!1s0x1973c313613a6fb9:0xc4c73f398d3b215e!8m2!3d-11.1387435!4d27.4527601!16s%2Fg%2F11m9vzzdd2?entry=ttu&g_ep=EgoyMDI0MDkxMS4wIKXMDSoASAFQAw%3D%3D.

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% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned companies

  • Sino-Metals Leach Zambia Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • CNMC-Mabende Metal Leach SPRL

Loan description

SML provides $22 million shareholder loan for Mabende Copper Leach Plant Construction Project

Interest typeUnknown

Narrative

Full Description

Project narrative

On March 20, 2012, Sino-Metals Leach Zambia Limited (SML) and Huachin SPRL entered into a agreement to establish a joint venture in the DRC to undertake the Mabende Copper Leach Plant Construction Project. CNMC-Mabende Metal Leach SPRL [CNMC-Mabende or (中色馬本德礦業有限公司)] — a special purpose vehicle and and joint venture of SML [60% equity stake] and Huachin SPRL (an LLC incorporated in the DRC) [40% equity stake] — subsequently received a $22 million shareholder loan from SML for the Mabende Copper Leach Plant Construction Project. The borrowing terms of the loan are unknown. The purpose of the project was to construct a copper leach plant -- with annual production capacity of 20,000 tons of 99.95% cathode copper — in Lwisha with the ores from the Mabende copper mine in the Democratic Republic of the Congo (DRC). Construction of the leach plant commenced in April 2013. The project was completed and officially commissioned on February 10, 2014.

Staff comments

1. Sino-Metals Leach Zambia Limited (SML) was legally incorporated in Zambia in December 2004 as a joint venture of CNMC [55% equity stake], NFCA [15% equity stake], and Hainan Sino-Africa Mining [30% equity stake]. 2. SML operates the Chambishi Leach Plant in Zambia. The construction of the Chambishi Leach Plant started in November 2004 and was completed in June 2006. The plant commenced commercial production of copper cathode in 2006.