Yunnan Copper Group provides $19.66 million shareholder loan for Chambishi Copper Smelter Construction Project

Project narrative

On May 8, 2007, Yunnan Copper Group signed a $19,660,500 shareholder loan agreement with Chambishi Copper Smelter Limited (赞比亚谦比希铜冶炼有限公司 or CCS) — a special purpose vehicle and joint venture of CNMC (60% equity stake) and Yunnan Copper Group (40% equity stake) — for the Chambishi Copper Smelter Construction Project. The loan carried an interest rate of LIBOR plus a 1.5% margin and a 7-year maturity (final maturity date: June 30, 2014). The loan's (principal) amount outstanding was $19,660,500 as of April 30, 2012. CCS was responsible for the construction and operation of the Chambishi Copper Smelter. The construction of the smelter began in November 2006 and was completed in December 2008. Commercial production of blister copper commenced in February 2009. Then, in 2010, CCS launched a smelter expansion project. In the first quarter of 2024, the Chambishi Copper Smelter cut one-fifth of its production due to power shortages in Zambia.