Overview

NORINCO provides $22 million supplier credit to Hwange Colliery Company to purchase mining equipment

Commitments (Constant USD, 2023)$23,843,992

Commitment Year•2012Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 14, 2012

Start (planned): Nov 14, 2012

Geospatial footprint

Map overview

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This project was located in the town of Hwange (GPS Coordinates 18°23′0.155″S 26°28′12.03″E) within Matabeleland North Province. More detailed locational information can be found in https://www.openstreetmap.org/node/5380665521

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% host country ownership

Funding agencies

State-owned companies

China North Industries Group Corporation Limited (NORINCO Group)

Receiving agencies

Private Sector

Hwange Colliery Co., Ltd.

Loan description

NORINCO provides $22 million supplier credit to Hwange Colliery Company to purchase mining equipment

Interest type•Unknown

Narrative

Full Description

Project narrative

On 14 November, 2012, China North Industries Group Corporation Limited (NORINCO) provided a $22 million USD suppliers credit to Hwange Colliery Company for the acquisition of equipment for underground and open cast mines and for a coal preparation plant. The equipment included caterpillars, bulldozers, excavators, fire tender vehicles and dump trucks. After commissioning, production is expected to double to 450,000 tpm Under the supply credit arrangement, Hwange Colliery Company intends to acquire equipment worth $40 million for underground and open cast mines and for a coal preparation plant, according to the company’s chairman Farai Mutamangira. Hwange Colliery Company announced that it would make a down payment of US$6.6 million to Norinco before the end of November 2012 with equipment deliveries expected during the first quarter of 2013.