(Ecofin Agency) – China is one of the main foreign investors active in the African mining sector. Already owners of several copper mines in the DRC and Zambia, Chinese companies strive every year to acquire new assets, in a context where new competitors are emerging.
The Emirati company International Resources Holding (IRH) has withdrawn from the race to buy the Lubambe copper mine in Zambia. At least that’s what it reports Reuters this week, specifying that the Chinese JCHX Mining is therefore on the verge of completing this transaction which will allow the Middle Kingdom to strengthen its footprint on African copper.
In March 2023, IRH had in fact expressed its interest in the Zambian asset which was already the subject of an agreement between its current owner EMR Capital and the Chinese JCHX. If this transaction goes through, it will be a victory for Chinese investors who are increasingly facing competition from new rivals in their conquest of African minerals essential to the energy transition.
Last year, for example, IRH beat China’s Zijin Mining in the race to acquire the Zambian assets of Mopani Copper Mines. “We are pleased to report that the announced transaction is on track and we expect to close in the coming weeks», Assured Jason Chang, general manager of EMR.
Competition between foreign investors is nevertheless expected to continue on the continent. Following the acquisition of a majority stake in Mopani Copper Mines through an investment of at least $1.1 billion, IRH plans to dedicate $1 billion for further acquisitions of mining assets in Africa this year.
The continent hosts around 30% of the world’s reserves of strategic minerals, such as copper, cobalt and lithium, at a time when demand for these metals is increasing worldwide.
As a reminder, Zambia is the second African producer of copper with around 700,000 tonnes delivered by its mines in 2023. The government, which holds 20% in the Lubambe project, wants to increase the country’s annual production to 3 million tonnes by 2030 and seeks to attract investment to achieve this goal.
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03/28/2024 – After Mopani, the Emirati IRH wants to expand its footprint in Zambian copper with the Lubambe mine
