[The Communist Chinese are all over Southern Africa. One day, the Chinese might end up dominating Africa, or colonising it. Jan]

Chinese firms have invested nearly US $170 million in Zambia”s mining sector, Chinese embassy commercial counsellor Zhang Shudong has said.

Zhang told Chinese press agency Xinhua that there are currently seven Chinese companies engaged in the mining industry in Zambia, with investments in the region of US $170 million.

Chambishi copper mine on the Copperbelt was the first mining project invested by Chinese companies, and was the first-ever Chinese overseas investment in non-ferrous metal mining.

China Non-Ferrous Metal Industries Corporation bought the mine in 1998 at about US $20 million.

The mine produced 50,000 tonnes of copper concentrates in 2004 from 800,000 tonnes of ores.

The mine”s general manager, Tao Xinghu, told Xinhua that his company has so far invested over US $150 million into the mine.

The agency reported that in November 2004, the company began to construct a leaching plant at a cost of US $15 million and its completion will enable Chambishi Mine to refine its own ores instead of selling it to other refineries.

The Chinese are also running a coal mine at the old Nkandabbwe mine in Sinazongwe district.

Collum Coal Mining Industries Limited, which started production in 2003 and recorded an output of 20,000 tons in 2004.

The company”s general manager, Xu Jianxue, told Xinhua that the company plans to increase its production to over 100,000 tons in 2005.

To meet increasing demand in the market, Xu said the company is in the process of opening a second shaft. When the project is completed, the mine would double its annual production to 200,000 tons, making it the biggest coal mine in Zambia.

Meanwhile, Chiman, a private firm from China”s Liaoning Province, is in the process of developing a manganese mine in Zambia”s old industrial town Kabwe. The mine has a proven deposit of 4 million tons.

According to company sources, the investor has completed the corporation registration process while various pieces of equipment have started arriving. Operation is expected to formally start within the year.

Counsellor Zhang described China”s investment in the mining sector as a win-win situation for both countries.

China, the world”s fastest growing economy, has driven up demands for various minerals sources. He said for Zambia, such investments have contributed to economic development and job creation.

However, many Chinese investors interviewed by Xinhua urged the Zambian government to further improve the local investment environment.

They said the Zambian government”s rigid control over expatriate staff, high transportation costs due to its landlocked position and poor infrastructure, discriminatory incentives, complicated labour relations laws, frequent strikes by workers, and poor local industries were not helping investors.

Source: AllAfrica.Com
URL: http://allafrica.com/stories/200507080737.htm…br>