Zambia secures US$500m for copper exports railway

Zambia's Northwest Rail has secured US$500 million for the first phase of a railway linking Zambia's Copperbelt to the Angolan border.

Online publication, Africa Trade Magazine, cited Northwest Rail chairman Enoch Kavindele as saying that South Africa's Grindrod Limited and other shareholders would provide the equity, and several banks would provide the larger debt portion.

Grindrod was contracted to build, operate and maintain the 590 kilometre railway in February 2014 by Northwest Rail, which won exclusive rights from the state to develop the line for use in exporting copper from Zambia.

"It will be a mix of 70% and 30% equity and both the debt and equity for the first phase are now in place," Kavindele reportedly told Reuters news agency on the sidelines of a mining and energy conference.

The first phase of the rail link will connect Zambia's old Chingola copper fields to the newer mines at Kansanshi, Lumwana and Kalumbila, Kavindele said.