Chinese Copper Miners Join $1.2 Billion African Rail Revamp

Article content(Bloomberg) — Chinese mining, shipping and logistics companies are joining a $1.24 billion project to revamp a railway linking Zambia’s copper region to a port on the Indian ocean.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentCopper producers CMOC Group Ltd. and Zijin Mining Group Co. are teaming up with state-owned China Civil Engineering Construction Corp., or CCECC, to upgrade the 1,860-kilometer (1,156-mile) rail line that runs to Dar es Salaam in Tanzania.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentCCECC – which signed a deal with Zambia and Tanzania in September to rehabilitate the so-called Tazara railway – will retain an 80% interest in the joint venture undertaking the project, according to a statement on Wednesday from Jiayou International Logistics Co., one of four firms taking 5% stakes. The other three are units of Zijin, CMOC and COSCO Shipping Holdings Co., Jiayou said.Article contentArticle contentThe backing for the Chinese project comes as Washington tries to loosen Beijing’s grip on supply chains for critical minerals in Africa. The US concluded a bilateral minerals partnership with the Democratic Republic of Congo in December that grants American companies preferential access to some of the country’s abundant reserves of metals.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Tazara link — originally built with Beijing’s assistance under Mao Zedong in the 1970s — will compete with the Lobito Corridor, a rail project backed by the US and European Union. That railway connects the same copper-rich region of central Africa to an Angolan port on the west coast of the continent.Article contentCMOC and Zijin are among the Chinese miners that dominate metal exports from Congo, the world’s No. 2 copper producer and the biggest source of battery material cobalt. By contrast, Western firms – particularly Canada-headquartered First Quantum Minerals Ltd. and Barrick Mining Corp. – account for most output in neighboring Zambia.Article contentTanzania and Zambia granted CCECC a 30-year concession to operate the line. Once completed, the rehabilitated infrastructure will ease congestion on roads in Zambia and Congo, from where most mineral cargoes are currently trucked over long distances to African ports. Article contentArticle contentThe Chinese companies will invest in the Tazara project according to the size of their interests in the Dubai-registered joint venture entity, according to Jiayou, which will contribute $62.2 million. The partners will operate freight services on the line after renovating the railway and purchasing equipment including locomotives and containers, it said, adding that the project still needs to complete the approval and filing process with China’s government.Article contentThe investments reflect a shift in China’s Belt and Road Initiative to increasingly partner with private companies to operate projects on commercial terms.Article contentState-owned COSCO is China’s largest container line, while Jiayou is the majority owner of one of Zambia’s biggest trucking firms and is developing road concessions in the country. Zijin is also Jiayou’s second-biggest shareholder, with a 17.5% stake in the group.Article contentWashington’s pact with Congo recognizes the “strategic nature” of the Lobito Corridor and aims to increase the volume of minerals exported to the US and its allies using the railway.Article content(Updates with information on Lobito Corridor in final paragraph)Article contentTrending U.S. targets Canada’s cloud-computing move as trade irritant Economy CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Snowbirds moving back home drives high demand for cottage properties Real Estate Bank of Canada worried about impact of oil shock on inflation during rate deliberations Economy U.S. within 'weeks' of oil shortages if war in Iran continues: Eric Nuttall Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. 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