The Zambian government, through ZCCM Investments Holdings, will retain 20% ownership of the Lubambe copper mine in Chililabombwe, near the DRC border. JCHX Mining will acquire a majority stake for $2, including paying off the mine’s debt.
Zambia, Africa’s second-largest copper producer, is also rich in gold and other minerals, attracting Chinese investments. JCHX has been providing mining services at Lubambe since 2017.
Chinese companies are expanding their mining investments in Africa, with recent acquisitions in Zambia and Botswana. This aligns with China’s strategy to secure key minerals for a decarbonized world.
The demand for minerals by China’s industries, especially for electric vehicles, is a driving force behind these acquisitions. However, geopolitical tensions and evolving battery technologies could impact future trade dynamics.
The importance of securing critical minerals and metals is evident in China’s recent deals with African countries, reflecting the global shift towards renewable energy sources and electric mobility.
Africa’s rich mineral deposits, combined with the changing market dynamics, present opportunities for Chinese companies to invest in copper and other strategic resources on the continent.