Jiangxi Copper, CMCC in Afghanistan mine deal

Jiangxi Copper and China Metallurgical Group Corp (CMCC) are investing US$4.39 billion in a deal to develop Afghanistan’s Aynak Copper Mine, one of the world’s largest, the South China Morning Post reported. Jiangxi Copper and state-owned CMCC will form a joint venture to operate the mine in what has become the largest single investment in Afghanistan’s history. The new joint venture will be 75% owned by CMCC, with the remaining 25% owned by Jiangxi Copper. CMCC will contribute US$980 million in cash to the investment and Jiangxi Copper will add US$320 million, with the remainder coming from project financing activities. In May, Jiangxi Copper agreed to pay Afghanistan’s Ministry of Mines US$808 million over time for the rights to explore and exploit resources in certain sections of the Aynak mine.