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ICBC (Europe) provides $60 million loan to CNMC Luanshya Copper Mines PLC for working capital purposes

$60M USD

Funder	Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe))
Recipient Organization	CNMC Luanshya Copper Mines PLC (LCM)
Country	Zambia
Start Date	Sep 03, 2012
End Date	May 22, 2029
Duration	6,105 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105866`

Grant Description

ICBC (Europe) provides $60 million loan to CNMC Luanshya Copper Mines PLC for working capital purposes On September 13, 2012, the Industrial and Commercial Bank of China (Europe) S.A. signed a $60 million loan agreement with CNMC Luanshya Copper Mines PLC (中色廬安夏銅業有限公司) — a special purpose vehicle legally incorporated under the laws of Zambia and a joint venture of China Nonferrous Mining Corporation Limited (中國有色礦業有限公司) [80% equity stake] and Zambia Consolidated Copper Mines Investments Holdings Plc (ZCCM-IH) [20% equity stake] — for working capital purposes.

The loan carried a 3-year maturity (final maturity date: September 11, 2015). It was backed by a repayment guarantee from China Nonferrous Mining Corporation Limited. CNMC Luanshya Copper Mines PLC (CNMC-LCM) operates the Baluba Center Mine and Muliashi Project.

The Baluba Center Mine produces copper concentrate, while the Muliashi Project is an integrated mining and leaching project that consists of the Muliashi North Mine and the Muliashi Leach Plant. Baluba Center Mine saw production resume in December 2009 following a shutdown in 2008. The construction of the Muliashi Project was initiated in 2010, with production commencing in 2012.

📋 Staff Comments

Zambia Consolidated Copper Mines Investments Holdings Plc (ZCCM-IH) is 17.25% owned by the Government of Zambia, 60.28% owned by Industrial Development Corporation (IDC) Limited (a wholly owned subsidiary of the Government of Zambia), and 15% owned by Zambia's National Pension Scheme Authority (NAPSA).
CNMC acquired an 85% stake in Luanshya Copper Mines (LCM) in 2009 for $50 million from Enya Holdings BV (Enya) following the suspension of operations at Baluba Centre Mine in the advent of the 2008 Global Financial Crisis. Immediately post-acquisition, CNMC changed the name of the mine to CNMC Luanshya Copper Mines PLC (中色廬安夏銅業有限公司 or CNMC-LCM), and it initially held an 85% equity stake in CNMC-LCM, and later transferred a 5% equity stake to ZCCM-IH to achieve a 80%:20% shareholding structure per the terms of the acquisition. Therefore, ZCCM-IH currently holds a 20% equity stake while CNMC holds an 80% equity stake.

📚 Sources & References

CNMC Luanshya Copper Mines Plc Nonferrous metal mining resources & development related trade and service
CNMC LUANSHYA COPPER MINES PLC
CNMC annual report 2014
Global Offering
China Nonferrous Mining Corporation Limited 2013 annual report Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.