China to buy another African mine as it elbows in to lead global green energy revolution

Chinese firm JCHX Mining is about to close a deal for an 80% stake in Zambia’s Lubambe copper mine as Beijing dominates African minerals

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Chinese company JCHX is close to finalising a deal to buy an 80 per cent stake in Lubambe copper mine in Zambia. Photo: Lubambe Copper Mine

Published: 4:00pm, 1 Jul 2024Updated: 4:06pm, 1 Jul 2024

Chinese companies are ramping up their acquisition of major copper, cobalt and lithium mining projects in Africa, dominating the critical minerals market, as Beijing positions itself to lead the global green energy transition.

In one of the most recent investments, Chinese firm JCHX Mining Management is close to finalising a deal to buy Zambia’s Lubambe copper mine.

The deal, which is awaiting approval from the Zambian authorities, would see the Shanghai-listed mining services and contracting firm hold an 80 per cent stake in the mine which is currently held by Australian-based investment firm EMR Capital, according to Reuters.

The Zambian government, through ZCCM Investments Holdings, will hold the remaining 20 per cent of the mine, situated at Chililabombwe, a town in the Copperbelt Province of Zambia near the Democratic Republic of the Congo (DRC) border.

Technically insolvent, Lubambe copper mine would be acquired by JCHX Mining for just US$2, the firm announced early this year. The Chinese company will set up a project company to buy the stake for US$1 from EMR Capital and pay another US$1 to buy off the company’s US$857 million debt.

Zambia is Africa’s second-largest copper producer behind the DRC. It is also rich in gold, precious stones, nickel ore, sulphur, ferroalloys, iron bars, cobalt, tobacco and soybean meal – which has attracted many Chinese companies.