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Overview

CNMC provides $44.06 million shareholder loan for Muliashi North Mine and Leach Plant Construction Project

Commitments (Constant USD, 2023)$50,083,261
Commitment Year•2011Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 18, 2011
Last repayment (originally scheduled)
Nov 16, 2018

Geospatial footprint

Map overview

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CNMC Luanshya Copper Mines PLC (CNMC-LCM) operates the Muliashi Project, which is is an integrated mining and leaching project that consists of the Muliashi North Mine and the Muliashi Leach Plant. More detailed locational information can be found at https://www.openstreetmap.org/way/250242538#map=14/-13.07703/28.33305

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 companies

  • China Nonferrous Mining Corporation Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • CNMC Luanshya Copper Mines PLC (LCM)

Loan desecription

CNMC provides $44.06 million shareholder loan for Muliashi North Mine and Leach Plant Construction Project

Grant element•8.4212%Interest rate (t₀)•6.69861%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•7 years

Narrative

Full Description

Project narrative

On November 18, 2011, China Nonferrous Mining Corporation Limited (中國有色礦業有限公司) signed an unsecured, $44,068,092 shareholder 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 Muliashi Project. The loan carried a 7-year maturity (final maturity date: November 17, 2018) an interest rate of approximately LIBOR plus a 6% margin, but its other borrowing terms are unknown. The loan's (principal) amount outstanding was $44,068,092 as of April 30, 2012. CNMC Luanshya Copper Mines PLC (CNMC-LCM) was responsible for the construction and operation of the Muliashi Project — an integrated mining and leaching project that consisted of the Muliashi North Mine and the Muliashi Leach Plant. 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. 3. AidData has estimated the all-in interest rate by adding 6% to average 6-month LIBOR in November 2011 (0.68054%).