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Xuzhou Construction Machinery Group provides $100 million supplier credit to Zimbabwe Mining Development Corporation (ZMDC) for provision of small scale mining equipment
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Xuzhou Construction Machinery Group Co., Ltd. (XCMG) |
| Country | Zimbabwe |
| Start Date | Jan 01, 2014 |
| End Date | Dec 13, 2027 |
| Duration | 5,094 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 61904 |
Grant Description
Xuzhou Construction Machinery Group provides $100 million supplier credit to Zimbabwe Mining Development Corporation (ZMDC) for provision of small scale mining equipment In 2014, Xuzhou Construction Machinery Group (XCMG Group) signed a $100 million supplier credit facility agreement with Zimbabwe Mining Development Corporation (ZMDC) for the provision of small scale mining equipment on credit.
XCMG Group is a Chinese multinational state-owned heavy machinery manufacturing company with headquarters in Xuzhou, Jiangsu. ZMDC is a state-owned mining company in Zimbabwe.
Zimbabwe’s Ministry of Finance and Economic Development issued a sovereign guarantee for this loan on December 8, 2014, making it a contingent liability of the Government of Zimbabwe.
In order to finance its supplier credit agreement with Zimbabwe Mining Development Corporation (ZMDC), XCMG Group of China secured a $100 million loan from China Development Bank (insured by Sinosure).
The USD 100 million was put into the Zimbabwean government's Gold Development Fund (or Gold Development Initiative Fund), increasing the size of the fund to USD 150 million.
The purpose of the fund is to facilitate the acquisition of equipment aimed at building the capacity of small-scale gold miners to increase gold output from the sector. The intended beneficiaries are small scale miners in gold, chrome, and tantalite minerals.
The project was in abeyance for several years due to delays by the Government of Zimbabwe to issue a sovereign guarantee for the loan.
Approximately $5 million worth of equipment from the facility arranged by XCMG with China Development Bank was handed over to miners in April 2017. There are also indications that another drawdown was made sometime in 2018 (see staff comments).
Staff Comments
- The Chinese project title is 小型采矿设备信贷项目.
- Sources indicate that the drawdown made in 2018 ranged anywhere from USD 5 million all the way up to 80 million (ie. Source IDs #158427 and 212402 ). However, the exact amount is unclear.
Sources & References
- Zim-China economic ties growing
- President of Zimbabwe Meets with XCMG Machinery Delegation Headed by President Lu Chuan, $100m miners loan facility to be launched at Mine Entra, $100 million for artisanal miners
- Sinosure to underwrite $100m Zim loan facility, $100m small-scale miners’ loan facility remodelled
- Zimbabwe ED dares mining firms, $250 million loan facility excites small scale miners
- ZIMBABWE INTERIM POVERTY REDUCTION STRATEGY PAPER (I-PRSP) 2016-2018
- NATIONAL ASSEMBLY HANSARD 29 MAY 2019 VOL 45 NO 57
- THE 2015 NATIONAL BUDGET STATEMENT
- Artisanal miners await $100 million facility
- Artisanal miners draw down US$80m to increase production
- Zimbabwe Economic Brief
- Chinese Loans to Africa Database (2022 Update) 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.
All Grantees
Xuzhou Construction Machinery Group Co., Ltd. (XCMG)
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