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Vol 4 (AAC) No 12

Published 1st October 2011


Zambia

Ties will remain strong, says Sata

Slating bad Chinese investment in Zambia was a major plank of oppositionist Michael Sata’s electioneering but Beijing’s businessmen are not worried

Immediately after Michael Sata’s election as President of Zambia on 22 September, global copper prices fell to their lowest point in almost a year, hitting US$7,500 per tonne, amid fears that debt problems in Europe would slow global growth. Government projections, however, show that annual copper exports should reach 1 million tonnes by 2012 and 1.5 mn. tn. by 2015. Asian investors have not been spooked by President Sata’s hot pre-campaign rhetoric and are instead bolstered by the prospects for copper production in the coming years. In early October, Standard Bank signed a $500 mn. bridge financing deal with India’s Vedanta Resources, the operators of the Konkola Copper Mines (see map). Standard said that it is also working on a $700 mn. loan to finance new investments.

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