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Overview

CDB provides $225 million loan for Kinsenda Copper Development Project

Commitments (Constant USD, 2023)$230,749,466
Commitment Year•2014Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 29, 2014
Start (actual)
Jan 1, 2013
End (planned)
Jan 1, 2015
End (actual)
Nov 1, 2017
Last repayment
May 26, 2026

Geospatial footprint

Map overview

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The project involved the development of the Kisenda Copper Development in Tshinsenda, DRC. More detailed locational information can be found at https://www.openstreetmap.org/way/1315097598.

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Kinsenda Copper Company SARL

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Kinsenda Copper Company SARL

Accountable agencies

State-owned companies

  • China Jinchuan Group Ltd.

Guarantors

State-owned companies

  • China Jinchuan Group Ltd.

Loan desecription

CDB provides $225 million loan for Kinsenda Copper Development Project

Interest type•UnknownMaturity•12 years

Narrative

Full Description

Project narrative

On May 29, 2014, China Development Bank (CDB) signed a $225 million loan agreement with Kinsenda Copper Company SARL — a project company in which Jinchuan Group International Resources Co. Ltd has a 77% ownership stake — for the Kinsenda Copper Development Project. The maturity of the loan is 12 years. However, the other borrowing terms of the loan are unknown. Jinchuan Group Co., Ltd (金川集團股份有限公司) issued a corporate guarantee in support of the loan. The loan's principal amount outstanding was $215,500,000 as of November 10, 2016. The Kinsenda Copper Development Project is a brownfield project situated in the Katanga Province of the DRC and it ranks as one of the world’s highest grade copper deposits. The project has good access to infrastructure, with a sealed single-lane road connecting the mine to the regional highway 20 km to the west of the site. It involves revitalized an existing mine (that was first development in 1980) into an 24,000 tonnes per annum copper concentrate mine. Construction began in 2013 and the project was originally expected to reach completion in 2015. However, due to unfavorable ground conditions and flooding of underground works, the project was rescheduled to be commissioned in 2017. Kinsenda concentrator completed it trial run in May 2015. Production commenced in 2016 and the first batch of concentrates wasexported in November 2017. Copper concentrate was tne processed into copper blister for sale between 2020 and 2021. Kinsenda mine concluded new copper concentrate export contracts and resumed the export of copper concentrate in. July 2021.

Staff comments

1. The Chinese project title is 金森達銅礦位. 2. The final repayment date of the term loan facility was specified as the the date falling 10 years from the date of the first utilization of such facility. Utilization was expected to take place within 24 months from the date of the signing of the facility agreement. 3. Pursuant to the facility agreement, the term loan facility may be cancelled and all the outstanding amounts may become immediately due and payable if 金川集團股份有限公司 (Jinchuan Group Co., Ltd*) (“Jinchuan Group”) (as guarantor) ceases directly or indirectly to own more than 50% of the shares of Kinsenda Copper Company SARL. 4. Kinsenda Mine ranks one of the world’s highest grade copper deposits with an average feed grade of 5.6%