Zijin Mining Plans to Provide RMB 348 Million Guarantee for RMB 6.96 Billion Loan for the Tanzania-Zambia Railway Revitalization Project

en.Wedoany.com Reported - On September 17, Zijin Mining Group Co., Ltd. announced that its associate companies TAZARA REVITALIZATION ZAMBIA LIMITED and TAZARA REVITALIZATION TANZANIA LIMITED plan to apply for loans from financial institutions including the Export-Import Bank of China, with a total loan amount not exceeding RMB 6.9608 billion. Zijin Mining will provide a joint and several liability guarantee for the debts under the loan contracts at a ratio of 5%, with the guaranteed principal not exceeding RMB 348.04 million, and the guarantee period being 3 years from the date of expiration of the debt performance period under the loan contracts. This guarantee matter has been reviewed and approved at the 16th extraordinary meeting of the 9th Board of Directors of Zijin Mining in 2026.

Tazara Zambia Company and Tazara Tanzania Company are respectively responsible for the construction and operation of the Tanzania-Zambia Railway Revitalization Project within Zambia and Tanzania. The business scope of the two project companies includes the construction, rehabilitation, operation and maintenance of railways, bridges, tunnels, culverts and other structures and systems. Zijin Mining indirectly holds 4.995% equity in each of the two companies. As of the announcement date, the two companies have not yet commenced actual business activities, and their assets, liabilities, operating revenue and profits are all 0.

According to the equity arrangement of the project companies, China Civil Engineering (Zambia) Co., Ltd. and China Civil Engineering East Africa Co., Ltd. respectively hold 0.1% equity in each of the two project companies, do not actually contribute capital, do not enjoy dividend rights, and do not assume the guarantee obligations herein. The remaining indirect shareholders jointly provide joint and several liability guarantees in proportion to their respective actual capital contributions. According to the announcement by Jiayou International on September 18, it also indirectly holds 4.995% equity in each of the two project companies, and provides a guarantee of up to RMB 348.04 million in principal for the same batch of loans at a ratio of 5%.

The Tanzania-Zambia Railway Revitalization Project is led by China Civil Engineering Construction Corporation. According to information from the Ministry of Transport and Logistics of Zambia, Tanzania, Zambia and China signed the Tanzania-Zambia Railway Revitalization Agreement on September 29, 2025, with a total project investment of approximately USD 1.408 billion, including an initial investment of approximately USD 1.17 billion and subsequent reinvestment of approximately USD 238 million. The scope of works covers the rehabilitation of more than 1,800 kilometers of existing railway lines, the renovation of some maintenance workshops, quarries and other supporting facilities, and the procurement of new locomotives, passenger cars and freight cars. The concession period is 31 years, and freight business is included in the scope of the concession.

In September this year, the Tanzania-Zambia Railway Revitalization Project continued to advance construction and operational preparations. According to disclosures from the Zambian side, the project plans to procure 32 locomotives and 762 freight cars; Tanzania and Zambia have also recently commenced the construction of a new Tanzania-Zambia Railway training center and operation control center.