China singles out four SADC investment targets

SA seen as preferred country on preferred continent CHINA HAS identified four SADC countries in particular – Zambia, the DRC, Zimbabwe and South Africa – as the focus for its growing investment in mining and metals. That’s according to Pieter Snyman, executive director of Africa of the Beijing Axis, who said South Africa was seen as the ‘preferred country’ on the ‘preferred continent’. “This strategic foothold also provides Chinese firms with a platform to conduct business into Africa.” Writing in the China Analyst for Africa this month on the rise of Chinese investment in mining and metals, he said that in Zambia copper production from the US$500m (R3.6bn) Chambishi copper mine project was primarily sold on foreign markets at higher prices than could be obtained in China, while the Jinchaun Group was to invest US$20m (R143m) in the Munali nickel project to ensure China’s soaring demand for the metal. In the DRC the Wanboa copper and cobalt smelting factory project brought with it an investment of US$21 million (R150m). Snyman describes it as an off-take agreement to provide Chinese smelters in the DRC with coal for electricity generation. In Zimbabwe the Chinese company Norinco exported mining equipment and six mining dump trucks valued in excess of US$1.8bn (R12.85bn). It also reached agreement with the Hwange Colliery Company to import equipment such as coal haulers, excavators and a water browser in return for coal and coke concessions. Norinco will also finance a multi-million dollar expansion of the Zimbabwe Electricity Supply Authority. In South Africa Citic Construction has embarked on mining projects for soda ash, coke-making and aluminium smelting. China’s largest gold producer, Zijin Mining Group, sought a strategic foothold by taking a 20% equity stake in Ridge Mining for R120 million. The company is also developing the R1 billion Blue Ridge mine in the Sheba’s Ridge development. Sinosteel has invested in the development of a chrome mine with Samancor.