China’s $1.4 Billion Investment in TAZARA Railway to Boost Copper Exports
China’s CCECC will invest $1.4 billion to upgrade the TAZARA railway, which is crucial for copper exports from Central Africa. The investment will enhance operational capacity with new locomotives and wagons while addressing long-standing logistical issues. The project is part of a larger effort to improve African infrastructure and reflects a resurgence in China’s lending to the continent.
The China Civil Engineering Construction Corporation (CCECC) has announced a $1.4 billion investment to upgrade the Tanzania-Zambia railway, also known as TAZARA. This enhancement is aimed at facilitating copper exports from Central Africa and alleviating logistics challenges in South Africa that have affected exports of copper and cobalt.
In a statement, TAZARA Authority CEO Bruno Ching’andu mentioned that the decision to grant a concession for rehabilitation was made after a thorough evaluation of the railway’s longstanding challenges. “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention,” he stated.
Last year, China entered an agreement to revitalize the 50-year-old TAZARA, coinciding with U.S. support for an alternate transport corridor for minerals connecting to the Lobito port in Angola. Of the total investment, $1 billion is allocated for rehabilitating rail tracks, with the remainder designated for acquiring 32 new locomotives and 762 wagons to enhance operational capacity.
The announcement was made during the Zambia International Mining and Energy Conference, where Ching’andu presented to potential investors. The concession will span 30 years, comprising three years dedicated to construction and 27 years focused on operation and maintenance, although negotiations have yet to be finalized.
This investment reflects a rebound in China’s lending to Africa, which reached a 20-year low in 2022 after peaking at $28.4 billion in 2016, according to Reuters. Ultimately, the partnership aims to improve infrastructure and allow for more efficient mineral exports from the region.
The investment by CCECC in the TAZARA railway represents a significant movement towards revitalizing essential transport infrastructure in Africa. The project not only aims to restore the operational capacity of TAZARA but also to enhance export processes for crucial minerals, thereby mitigating logistical challenges. This financial commitment highlights China’s growing influence and renewed focus on supporting African infrastructure development.
Original Source: www.miningmx.com
