International news within the industry of mining and metal, May, 22 2019
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Chinese group to invest $556M in Canadian miner

Photo: Ivanhoe Mines
Photo: Ivanhoe Mines
Published by
Jaroslaw Adamowski - 12 Jun 2018

Chinas CITIC Metal has agreed to purchase a 19.9% stake in Canadian miner Ivanhoe Mines under a deal worth about C$723 million ($556 million) to "help advance Ivanhoes three world-scale mine-development projects in Southern Africa". 

 

"Ivanhoe Mines intends to use the proceeds for the advancement of the companys world-scale mine development projects in Southern Africa Kamoa-Kakula, Platreef and Kipushi and also for working capital and general corporate purposes," the Canadian company said in a statement.

 

Kamoa-Kakula is the company’s flagship copper project.

 

CITIC Metal has also agreed to provide Ivanhoe with a nine-month, interim loan of $100 million in accordance with an agreed term-loan-facility agreement.

 

CITIC is China's largest conglomerate with total assets of more than $900 billion, according to the statement. The group is focused on financial services, resources and energy, manufacturing, engineering contracting, and real estate.

Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat
Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat

Chinese control half of the Congo's cobalt