The Chinese mining services and contracting firm JCHX is close to finalizing a deal to acquire an 80% stake in Zambia’s Lubambe Copper Mine, further solidifying China’s dominance in the African copper mining industry.
According to sources familiar with the matter, JCHX’s plan to purchase the Lubambe mine from the Australian firm EMR Capital was nearly derailed when the UAE-based International Resources Holding (IRH) expressed interest in the same assets. However, IRH has since bowed out, clearing the way for JCHX to complete the acquisition in the coming weeks.
The Lubambe mine, which has been owned by EMR since 2017, produces around 15,000 tons of copper per year but needs to ramp up output to become sustainable. EMR is looking to exit the project as its investment funds mature, particularly after the COVID-19 pandemic delayed the mine’s development.
The deal will see Zambia’s state-owned ZCCM-IH holding a 30% stake in the Lubambe assets, according to Hapenga Kabeta, the Permanent Secretary in Zambia’s Ministry of Mines.
This latest acquisition is part of China’s aggressive push to secure access to critical raw materials, such as copper, cobalt, and lithium, needed to power the country’s rapidly expanding electric vehicle industry. Chinese companies have been actively pursuing mining deals across Africa, particularly in Zambia and the Democratic Republic of Congo, the world’s top cobalt producer.
The Lubambe acquisition follows other major Chinese mining investments in the region, such as MMG’s purchase of Botswana’s Khoemacau copper mine for $1.9 billion. This growing Chinese footprint in Africa’s critical minerals sector is raising concerns about Beijing’s tightening grip on these strategic resources.