Wednesday, November 5, 2008

Chinese Miner Invests USD2 bn in Zambia

By Peter Bachmann, 19 September 2008

Zhonghui International Mining is investing USD2 bn in new mines and the construction of a new town in Zambia, African news wires report.

Charles Shi, President of Zhonghui, announced the investment during a meeting with Felix Mutati, Zambia's Minister of Commerce, Trade and Industry, at the company's Beijing headquarters.

The USD2 bn project includes the opening of two mines in Luapula and north western provinces, a hydropower station and a water supply system. Shi said his company will apply for a prospecting license before committing to the entire project. Mutati said the government will consider the Chinese project after a detailed analysis.

Official statistics show that Chinese companies have invested USD500m in mining and other sectors since 2002. A further USD900m are announced for investment from China as Zambia offers tax exemption and lower custom duties.