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Chinese buy into Luanshya copper mine

Luanshya Copper Mines 
Beijing, China — MININGREVIEW.COM — 16 October 2009 – The Chinese and Zambian governments have approved China Nonferrous Metal Mining Corporation’s US$50 million (R400 million) acquisition of an 80% stake in Zambia’s Luanshya Copper Mines.

This new development was reported from here by Reuters, quoting Chinese state media.

CNMC president Luo Tao said the state-owned Chinese company aimed to lift Luanshya into the ranks of Zambia’s top-three copper producers, the official People’s Daily newspaper reported.

Earlier this year CNMC pledged to invest US$400 million (R3.2 billion) in Luanshya, which had been closed down by its previous owners in December 2008, after taking over the running of its mines.

Critics in Zambia have said that the purchase price for Luanshya was too low and have questioned the transparency of the bidding process.

Reuters reports that China’s government and its state-controlled companies have invested billions of dollars in Africa to secure natural resources for its fast-expanding economy “’ a push that has brought Africa much welcomed cash, but has also fuelled concerns about China’s growing influence.