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Overview

ICBC (Europe) provides $45 million loan to CNMC Luanshya Copper Mines PLC for working capital purposes

Commitments (Constant USD, 2023)$48,771,803
Commitment Year•2012Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaOverseas Jurisdiction•LuxembourgSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 13, 2012
Last repayment (originally scheduled)
Dec 13, 2015

Geospatial footprint

Map overview

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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. More detailed locational information can be found at https://www.openstreetmap.org/way/112585553 and 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 Commercial Banks

  • Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe))

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • CNMC Luanshya Copper Mines PLC (LCM)

Guarantors

State-owned companies

  • China Nonferrous Mining Corporation Limited

Loan desecription

ICBC (Europe) provides $45 million loan to CNMC Luanshya Copper Mines PLC for working capital purposes

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On December 13, 2012, the Industrial and Commercial Bank of China (Europe) S.A. signed a $45 million 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 working capital purposes. The loan carried a 3-year maturity (final maturity date: December 13, 2015). It was backed by a repayment guarantee from China Nonferrous Mining Corporation Limited. 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.