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
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