Narrative
Full Description
Project narrative
On August 31, 2010, BOC Finance (Ireland) Limited signed a $210,000,000 unsecured loan agreement with CNMC Luanshya Copper Mines PLC (中色廬安夏 銅業有限公司) — a special purpose vehicle legally incorporated under the laws of Zambia and a joint venture of China Nonferrous Mining Corporation Limited (中國有色礦業有限公司) [80% equity stake] and Zambia Consolidated Copper Mines Investments Holdings Plc (ZCCM-IH) [20% equity stake] — for the Baluba Center Mine Renovation and Muliashi North Mine and Leach Plant Construction Project. The loan had two tranches: a $197,450,000 fixed asset tranche that carried a 9-year maturity and a $12,550,000 working capital tranche that carried a 3-year maturity. It was backed by a repayment guarantee from China Nonferrous Mining Corporation Limited. The loan's (principal) amount outstanding was $197,450,000 as of April 30, 2012. CNMC Luanshya Copper Mines PLC (CNMC-LCM) operates the Baluba Center Mine and Muliashi Project. The Baluba Center Mine produces copper concentrate, while the Muliashi Project is an integrated mining and leaching project that consists of the Muliashi North Mine and the Muliashi Leach Plant. Baluba Center Mine saw production resume in December 2009 following a shutdown in 2008. The construction of the Muliashi Project was initiated in 2010, with production commencing in 2012.
Staff comments
1. Zambia Consolidated Copper Mines Investments Holdings Plc (ZCCM-IH) is 17.25% owned by the Government of Zambia, 60.28% owned by Industrial Development Corporation (IDC) Limited (a wholly owned subsidiary of the Government of Zambia), and 15% owned by Zambia's National Pension Scheme Authority (NAPSA). 2. CNMC acquired an 85% stake in Luanshya Copper Mines (LCM) in 2009 for $50 million from Enya Holdings BV (Enya) following the suspension of operations at Baluba Centre Mine in the advent of the 2008 Global Financial Crisis. Immediately post-acquisition, CNMC changed the name of the mine to CNMC Luanshya Copper Mines PLC (中色廬安夏 銅業有限公司 or CNMC-LCM), and it initially held an 85% equity stake in CNMC-LCM, and later transferred a 5% equity stake to ZCCM-IH to achieve a 80%:20% shareholding structure per the terms of the acquisition. Therefore, ZCCM-IH currently holds a 20% equity stake while CNMC holds an 80% equity stake.