Congo project has a new partner
The China Metallurgical Group, a state-owned resource development firm, is to take part in a major mining project in the Congo, according to joint venture partner China Railway Group.
China Metallurgical will take a 20 percent stake in the venture and provide partial loans and assist in arranging financing.
China Railway, the project leader, will cut its stake to 28 percent from the initially proposed 43 percent, China Railway said in a statement to the Shanghai Stock Exchange yesterday.
Another Chinese investor, Sinohydro Corp, will also lower its stake to 20 percent from 25 percent to make way for China Metallurgical’s investment.
The ownership for the Congo side remains unchanged at 32 percent in the venture, despite some share transfers among its internal partners. The venture has a registered capital of US$100 million.
Commitment
In April, China Railway announced the venture would invest in a copper and cobalt mining project in Congo. Under the amended terms, the Beijing-based railway constructor said its capital commitment, which includes paid-up capital and loans, to the project will be reduced to US$2.64 billion from US$4.04 billion.
The Chinese consortium has agreed to provide loans and assist in arranging financing of a combined US$2.9 billion to the venture for the mining project.
China Metallurgical’s expertise and experience in the fields of resource development would help contribute to the smooth progress for the venture’s business development, China Railway said.
Tags: investment, Railway