CDB provides $350 million loan for Musonoi Copper and Cobalt Mine Development Project

CDB provides $350 million loan for Musonoi Copper and Cobalt Mine Development Project On December 18, 2020, Ruashi Mining SAS — a special purpose vehicle incorporated in the DRC and an indirect non wholly-owned subsidiary of Jinchuan Group International Resources Co.

Ltd (a company incorporated in the Cayman Islands that is ultimately owned by Jinchuan Group Co., Ltd) — signed a $350 million loan agreement with the Gansu Branch of China Development Bank (CDB) for the Musonoi Copper and Cobalt Mine Development Project.

Jinchuan Group Co., Ltd (金川集團股份有限公司) issued a corporate repayment guarantee in support of the loan. The first tranche of the loan (worth $100 million) was drawn (disbursed) in June 2021. The loan had disbursed $191 million by June 2023.

The purpose of the project is to develop and construct the Musonoi (brownfield) copper and cobalt mine in the northern outskirts of the town of Kolwezi in the DRC’s Lualaba Province (exact locational coordinates: -10.710876, 25.399017).

Upon completion, the mine is expected to produce an average of 7,400 tons of cobalt and 38,000 tons of copper per annum.

The project area contains at least 2 known mineralized zones, one of which (known as Dilala East) was discovered as a blind, high grade copper and cobalt deposit in 2007.

Following the initial discovery of the high grade mineralised zone, the property was extensively drilled and had a declared mineral resource of 31.7 million tons at a grade of 2.8% copper and 0.9% cobalt.

The mineral resource was defined to a depth of 600 meters below surface and indications are that the ore body is open to approximately 1,000 meters below surface. The main shaft construction commenced in December 2019. Then in May 2022, the first batch of oxide ore was successfully extracted under trial stoping.

Construction of the deep processing and smelting plant began in March 2023. The project was originally expected to start individual trial testing by the end of December 2023. Expected completion of the mine is during Q2 2026.