Approval for Platmin Deal Expected In Weeks
China’s largest gold producer, Zijin Mining Group Co., has said that it expects the governments of the Democratic Republic of Congo and China to approve its joint $284 million bid to buy copper mine developer Platmin Congo.
Zijin is looking to buy Platmin Congo along with the state-backed China-Africa Development Fund. Platmin has stakes in two copper-cobalt projects.
Vice Chairman Lan Fusheng told reporters in Shanghai that China is expected to nod through the deal next month although agreement from the Congo government is expected to take a little longer. The deal will go through once a “misunderstanding” is resolved.
“I believe this will eventually receive approval from the Congo government because the project needs investment,” Mr Lan said.
Alexis Mikandji Penge, Chief of Staff to Congo’s Ministry of Mining, pointed to a decision by the Congolese government last August which prohibits a partner in a joint mining venture in Congo to change the partnership or transfer shares before the project begins commercial production. It is believed that the country’s Minister of Mines, Martin Kabwelulu apparently learned of the proposed deal over the internet.
The state-owned mining company, Gecamines, has a 32 per cent stake in Platmin’s projects, Deziwa and Ecaille C. Zijin will own 60 per cent of the venture controlling Platmin with the China-Africa Development Fund holding the remaining 40 per cent. The $1 billion fund aims to support Chinese companies investing in Africa. It is believed that the fund initially got involved in the project and sought investment from Zijin to take over the development.
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