China Development Bank provides $240 million to Sinosteel for Zimasco Equity Acquisition Project

China Development Bank provides $240 million to Sinosteel for Zimasco Equity Acquisition Project In 2007, China Development Bank provided a $240 million loan to Sinosteel (中国中钢集团有限公司) for the Zimasco Equity Acquisition Project.

The proceeds of the loan were to be used by the borrower to facilitate Sinosteel’s acquisition of a 92% equity stake in the Mauritius-based company ZCE, which is the owner of the Zimbabwe’s largest chromium producer, Zimbabwe Mining and Smelting Company (Zimasco).

On September 19, 2007, the Chinese state-owned company Sinosteel Corporation signed an agreement to acquire a majority 92% stake worth $200 million in the Mauritius-Zimbabwean company Zimasco Consolidated Enterprises (ZCE) (Chinese contract name: 中钢集团收购津巴布韦Zimasco之控股公司ZCE股权项目).

The agreement also included an option to acquire the remaining 8% stake over the following two-and-a-half years; Sinosteel did not formally acquire its share in Zimasco until December 13, 2007.

Also, as part of the deal, Sinosteel gained indirect ownership of ZCE's subsidiary, Zimasco Holdings: a ferrochrome producer and exporter based directly in Zimbabwe.

Sinosteel originally planned to purchase a 50% stake in Zimasco but that progressed over time to 67%, 73%, and eventually 92%.

All of Zimasco's staff and management were expected remain in place, while Sinosteel was expected acquire Zimasco's iron-ore mines and smelting plants in Zimbabwe.

As of 2010, Zimasco Holdings was renamed as Sinosteel Zimbabwe Chrome, but it remains a wholly-owned subsidiary of Sinosteel Corporation. It is the largest ferrochrome producer in Zimbabwe with major plants operating in Kwekwe and Shurugwi, Zimbabwe.