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Sunday, 24 November 2013
South African Cement Project Boosted By $120m Chinese Fund
VENTURES AFRICA – The South African Mamba Cement project has been given a boost after its financers, China’s Jidong Development Group, the China-Africa Development Fund and a South African cement company, agreed a $120 million funding deal from China.
The project, which is situated in the Limpopo province, has an investment valuation of $220 million with a capital fund of $100 million, 51 percent of which is held by Chinese shareholders.
It has further received a project financing worth $120 million, jointly provided by South Africa’s Nedbank and Bank of China’s Johannesburg office.
However, this is unlike other international investment arrangement as it is based on forecasted cashflows of the project rather than the financial health of its sponsors, local newspaper NZWeek reported.
“Project financing offers Chinese companies a new way to make overseas investments” said Chen Ying, vice-president of China’s Jidong Development Group.
The project will include a new cement clinker production line with an annual output capacity of 1 million tons coupled with an afterheat electricity generation facility, capable of producing 26.8 million kilowatts.
Mamba project will become the first cement manufacturing plant on the continent with the capability of generating waste-heat-driven energy.