Saturday, November 1, 2008

China's Zhonghui International Mining Group plans to invest £2bn in Zambia

ZNBC News are reporting that China's Zhonghui International Mining Group plans to invest £2bn to create " a new city" in North Western Province. Natural skeptism with regards to the announcement, one after all remembers the oil discoveries that were muted during another bye-election and have never materialised, apparently "slowed" by the need for new legislation. That aside if true, this could be bigger than anything Zambia has seen before.

Article reproduced below:

A Chinese mining company conducting explorations on the Copperbelt has appealed to the government for a mine prospecting licence. Zhonghui Mining Industry want to open up new mines in Luapula and North-Western provinces at a cost of $2 billion.

Company President Charles Shi said the firm plans to set up a new city in the North-Western Province, complete with an independent hydropower station and water supply system.

Mr. Shi said the mining company does NOT intend to use power from ZESCO's national grid but to construct a new hydro power station on one of the rivers in the North-Western.

He said Friday that if approved, the smelter will be biggest in Zambia. Mr. Shi was speaking at the headquarters of Zhonghui International Mining Group based in Beijing when he met Commerce Minister, Felix Mutati.

Mr. Mutati said once implemented, the project will be the biggest investment by a private company in the history of Zambia.