Lusaka, Zambia — MININGREVIEW.COM — 14 April 2010 – Chinese mining giant China Nonferrous Metal Mining (CNMC) plans to invest US$600 million (R4.5 billion) in Zambia between 2010 and 2011, having been encouraged by the country’s abundant mineral resources and political stability.
Revealing this here during the signing of an agreement with the Zambian government for the joint development of a planned project to recover residue copper in tailings dams, company president Luo Tao said the money would be used to buy new mining equipment, develop a new copper mine, expand an existing copper mine and smelter facility, develop a tax-free economic zone, and to expand a copper processing plant.
“We will begin the investment of US$600 million (R4.5 billion) soon, and hope to finish this investment by next year,” he added.
Luo said US$300 million (R2.25 billion) would go to the Luanshya copper mine, which CNMC took over last year, and most of that money would be spent on developing the Mulyashi copper project. According to official data, CNMC plans to start developing the Mulyashi copper mine this year after approving a feasibility study, and production is expected to begin in 2012 with output projected at about 60 000 tonnes of copper a year.
“The other US$300 million (R2.25 billion) will be invested in projects such as the planned expansion of the Chambishi copper smelter in the Zambia-China economic zone,” he said.
Luo pointed out that over the last 12 years CNMC had invested US$1 billion (R7.5 billion) in Zambia, and would spend US$5 million (R37.5 million) on feasibility studies to establish whether it was viable to recover the residue copper in the Mufulira tailings dams.
CNMC would invest more in Zambia because of its rich mineral resources and political stability, Luo concluded.