China’s JCHX is best known as a global mining contractor and services provider to operations like Kamoa-Kakula and Konkola but is rapidly increasingly its influence in Africa as a copper mine in its own right. It already has two mines in its own portfolio – Lonshi in DRC, previously owned by ERG; and Dikulushi, also in DRC, which it acquired from a subsidiary of Trafigura. Now it has moved to acquire Lubambe in Zambia from EMR Capital Resources.

JCHX is establishing a new overseas wholly-owned subsidiary to acquire 80% of the equity of Lubambe Copper Mine Ltd (LCML) for US$1. It will also absorb a lot of debt – acquiring approximately US$857 million in loans provided by Lubambe Copper Holdings Ltd to LCML for US$1. If this transaction is successfully completed, the company will own 80% of the Lubambe copper mine with the Zambian Government retaining its 20% stake.

JCHX stated: “This move not only marks another solid step for JCHX in the field of mining resource development, but also fully demonstrates the company’s growing international influence in the global mining market.” JCHX had only just secured last year a new US$116 million contract to operate Lubambe copper mine in Zambia

LCML’s core asset is the Lubambe copper mine in Zambia. The Lubambe copper mine is located in the Chililabombwe region of the Copperbelt Province of Zambia and has significant strategic and resource value. As of September 30, 2023, the Lubambe copper mine resources (proven + controlled + inferred) were 86.6 Mt, with a copper grade of 1.95%, and acid-soluble copper 0.35%.

JCHX stated: “JCHX’s potential acquisition of the Lubambe copper mine not only demonstrates the company’s comprehensive strength in the field of international mining resource integration and development, but also highlights its important position in the international mining market. Since its establishment, JCHX has been committed to becoming an internationally renowned and domestically leading planner, builder and operator of safe mines, ecological mines and smart mines. The acquisition of the Lubambe copper mine is an important measure for JCHX to deepen international mining cooperation. It has laid a solid foundation for the company’s international development. At the same time, it is also a concrete manifestation of Chinese mining companies’ active participation in the development of the copper mining industry in Zambia and even the world.”

Through this acquisition, JCHX says it will use its professional technology and experience in the fields of mining engineering construction and operation management to continuously improve the development efficiency and output capacity of the Lubambe copper mine.  It “firmly believes that by improving technology and optimising resource allocation, it can work with other partners to promote the success of the Lubambe copper mine project. While ensuring the sustainable development of mineral resources, it will also bring more opportunities and economic growth to the local community.”