ZCCM Sells Majority Stake in Lubambe Copper Mines to Chinese Mining Giant JCHX

Zambia’s mining industry, ZCCM Investments Holdings Plc (ZCCM-IH) has sold an 80% stake in Lubambe Copper Mines Limited to JCHX Mining Management Company Limited, a leading Chinese mining contractor.

According to the announcement by ZCCM-IH, EMR Capital, the previous majority shareholder of Lubambe, has divested its 80% shareholding to JCHX’s wholly-owned subsidiary, Sundimo Mining Investments Limited.

The new majority owner, JCHX, has pledged to invest approximately $300 million into Lubambe to fund operations and extend the mine’s lifespan. A revised shareholders’ agreement and commercial terms will now be negotiated between ZCCM-IH and Sundimo.

“The Board is confident that with the new partner on board, ZCCM-IH will extract value from Lubambe for the benefit of all the stakeholders,” the company statement read.

JCHX, one of the largest privately owned mining contractors in China, has been steadily expanding its global footprint. The company, which was listed on the Shanghai Stock Exchange in 2015, currently operates 36 projects across several countries, including Zambia, the Democratic Republic of Congo, Serbia, Indonesia, and Kazakhstan.

The acquisition of the majority stake in Lubambe Copper Mines is seen as a strategic move by JCHX to solidify its presence in Zambia’s lucrative copper mining industry. The deal also reflects the growing Chinese investment in Africa’s extractive sectors, as Beijing continues to seek reliable sources of raw materials to fuel its economic growth.

The transaction is subject to regulatory approvals and the finalization of the new shareholders’ agreement between ZCCM-IH and Sundimo. Industry analysts will be closely watching the impact of the change in ownership on the operations and performance of Lubambe Copper Mines in the coming years.