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Overview

Gold Mountains (H.K.) International Mining Company Limited contributes to shareholder loans worth $163.4 million for CARRILU Cement Plant Construction Project

Commitments (Constant USD, 2023)$48,059,651
Commitment Year2019Country of ActivityDemocratic Republic of the CongoDirect Recipient Country of IncorporationDemocratic Republic of the CongoOverseas JurisdictionHong Kong (China)SectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2019
End (actual)
Sep 1, 2020
Last repayment (originally scheduled)
Sep 30, 2024

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

  • Gold Mountains (H.K.) International Mining Company Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • La Carrière Du Lualaba Société par Actions Simplifiée (CARRILU)

Loan description

Gold Mountains (H.K.) International Mining Company Limited provides shareholder loans for CARRILU Cement Plant Construction Project

Interest typeUnknownMaturity4.918 years

Narrative

Full Description

Project narrative

In September 2019, Zijin International Capital Company Limited and La Carrière Du Lualaba Société par Actions Simplifiée (CARRILU) entered into an agreement on the provision of a shareholder loan of $110,842,000 to CARRILU with a maturity date of September 30, 2024. The loan was interest-bearing at an agreed rate. Then, in November 2019, Gold Mountains (H.K.) International Mining Company Limited — a wholly owned subsidiary of Zijin Mining Group Co., Ltd. — entered into an agreement with CARRILU to provide it with a loan of $39,952,000 with a maturity date of September 30, 2024. The loan was interest-bearing at an agreed rate. Subsequently, Gold Mountains (H.K.) International Mining Company Limited and Zijin International Capital Company Limited provided loans to CARRILU on several occasions. In October 2023, the parties entered into a supplemental agreement to revise the maturity date of the loans previously provided to September 1, 2028. As at December 31, 2023, the principal outstanding amount under these shareholder loans was $163,491,600; and the total interest receivable was $38,962,231. The purpose of the project was to construct a new 0.8 metric ton per year cement plant near Kolwezi, the capital of Lualaba province. In September 2020, CARRILU launched the new cement plant. A start-up ceremony was attended by Julien Paluku Kahongya, the Minister of Industry, and Richard Muyej, the governor of Lualaba. The plant was expected to create up to 1000 jobs.

Staff comments

1. The precise face value of the shareholder loans are unknown. For the time being AidData, uses the highest observed amount of principal outstanding ($163,491,600) as a proxy for the face value of the loan. 2. It is known that Zijin International Capital Company Limited provided a $110,842,000 shareholder loan to CARRILU, and that Gold Mountains (H.K.) International Mining Company Limited provided a $39,952,000 shareholder loan to CARRILU. The combined amount from these two loans is $150,794,000. The allocation of the remaining $12,697,600 of the outstanding principal amount from the two lenders is unspecified. For the time being, AidData assumes that each lender contributed equally to the outstanding principal amount ($6,348,800 each). As such, the transaction amount from Zijin International Capital Company Limited has been recorded as $117,190,800, and the transaction amount from Gold Mountains (H.K.) International Mining Company Limited has been recorded as $46,300,800.