China Economic Review
Charting China’s changing economic terrain · Since 1990

China invests $877m in South African platinum mines

May 27, 2010

China’s state-owned miner Jinchuan and China Development Bank (CDB) are set to invest a total of US$877 million in South Africa’s platinum industry, the Financial Times reported. The deals mark China’s second-largest investment in Africa outside the energy sector. Jinchuan plans to take up a 51% stake in Wesizwe, a small South African platinum developer for US$277 million while CDB are due to raise US$650 million in project finance to develop its flagship Frischgewaagd-Ledig platinum project, located west of Pretoria. "This is a very significant strategic play because it gives China its first direct access to platinum," a Johannesburg-based advisory firm said. China’s investments in Africa have grown steadily in recent years as Beijing looks to secure supplies of energy and commodities.

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