China Eximbank provides $20.8 million buyer's credit loan for Phase 2 of Khatoonabad Copper Smelter Project

📋 Staff Comments

1. This project is also known as Phase II of the Khatoon Abad Copper Smelter Plant Construction Project, Phase II of the Khatunabad Copper Complex Construction project, Phase II of the Copper Smelter Plant Construction Project, or Khatoon Abad Copper Smelter Project. The Chinese project title is 阿巴德铜冶炼厂 or 伊朗哈通-阿巴德銅冶煉廠項目 or 伊朗哈通•阿巴德铜冶炼厂项目. The Persian project title is کارخانه ذوب مس خاتون آباد.
2. The Government of Iran holds a minority ownership stake in Bank Tejarat.
3. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 4.5756-years in 2000. AidData estimates the grace period of the China Eximbank loan that supported Phase 2 of the Khatoonabad Copper Smelter Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 12.0664-years in 2000. AidData estimates the maturity of the China Eximbank loan that supported Phase 2 of the Khatoonabad Copper Smelter Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 6. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 7.3739% in 2000. AidData estimates the interest rate of the China Eximbank loan that supported Phase 2 of the Khatoonabad Copper Smelter Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0

📚 Sources & References

• Innovation Products
• Background History After 2000
• Eximbank Provides Buyer's Credit for Iranian Copper Mill
• 一带一路”沿线的中国有色分量
• 中国有色金属建设股份有限公司二ΟΟΟ年年度报告摘要
• 王宏前总经理赴伊朗考察访问
• Iran Hatong Abad Copper Smelter Project
• T h e Development & Selection of Copper Smelting Technology in China
• Government Concessional Loan and Prefferential Buyer's Credit Brochure
• Annual Report, 2004 Khatoon Abad Copper Smelter in Iran was put into production._NFC
• Implementing Integrity_NFC
• 中国有色矿业集团有限公司
• 刘振堂大使出席伊朗哈通阿巴德铜冶炼厂竣工仪式, (PDF) Determination of the transport routes of and the areas potentially affected by SO2 emanating from Khatoonabad Copper Smelter (KCS)
• Kerman province
• Iran using HYSPLIT
• 中国有色金属建设股份有限公司_筹_招股说明书概要
• China's Overseas Development Finance 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.