On April 26, a ceremony was held for the completion of JCHX’ acquisition of ERG’s copper asset in DRC. The transaction was officially settled upon the necessary approvals from both China and DRC government, marking a major milestone for JCHX in its resource development progress.
ERG is a diversified Luxembourg-based natural resources group focusing on mining, processing, energy, logistics and marketing, with its businesses spreading across Kazakhstan, China, Russia, Brazil, DRC, Zambia, Mozambique, and the Republic of South Africa. ERG has maintained long-term and friendly cooperation with various Chinese enterprises.
On January 15, 2021, a cooperation agreement was signed between JCHX and ERG based on mutual understandings and agreement over a copper mine in DRC. With sincerity and joint efforts, all the required approvals were obtained on schedule with necessary conditions for completing the transaction met.
After the transaction, JCHX possesses 1 exploitation permit PE13093 and 7 exploration permits, covering nearly million tons of premium copper. In particular, Lonshi Copper Mine under PE13093 is a strata-bound deposit in Central Africa Copper Belt with 870kt of copper at a grade of 2.82%. The deposit is under stratigraphic and lithologic control, featuring thickness, high grade and stable extension, and with a great potential of increased reserve.
In addition, seven exploration permits collectively cover an area over 900 km2, spread over the southeastern DRC and sit in the east of Central Africa Copper Belt. Currently only geophysical, geochemical exploration and limited drilling were launched. A great potential of increased reserve can be expected with detailed geological survey to be conducted later.
Open pit mining was once carried out at Lonshi Copper Mine in 2001, but deeper resources have yet been mined. Certain infrastructure and facilities have been established on site with national grid connected, and decline partly developed, which will contribute to a rapid, low-risk, and stable production recovery. Besides, the mine is adjacent to the border of Zambia, and close to Kasumbalesa port and JCHX’s projects in Zambia which will facilitate the coordinated management and operation of various projects within the region.
A feasibility study was completed for the project where conclusions were made that production can be recovered within 2-2.5 years and 1.5 mtpa capacity can be achieved after ramp up. Lonshi Mine will be a flagship project for JCHX’s resource development blueprint, and a strong backup for the business transformation and implementation of corporate strategic plan.
Resource development is an emerging business for JCHX and a key factor for its long-term performance and profit. The acquisition of Lonshi project is highly in line with JCHX’s corporate strategy, and will enable JCHX to further expand its business in resources development, improve industrial layout, and promote a sustainable, stable and sound development.
