Dathomir is just a middle man, does not pay for US$285m road upgrade, nor USD$45m for hydropower station.
I believe the funding was from the Sicomines' Infrastructure for Resource pack signed in 2008.
In return, Sicomines (China Railway Group & China Hydropower Construction Group hold 67%, DRC holds 32% and Huayou 1%), received one of the world's best copper & cobalt mine, and the agreement was also exempt Sicomines from any tax and customs obligations in the DRC.
"It is worth noting that during the first two phases the agreements exempt Sicomines from any tax and customs obligations in the DRC. Instead, it will be paying for the infrastructure by reimbursing the loans used to finance public works, in addition to reimbursing its own mining investment loan.
• During phase one, all of Sicomines’ profits are to be used to repay the Eximbank loans that financed “the most urgent infrastructure projects” carried out as part of the agreement, in addition to the interest accrued on these loans.
• During phase two, 85 percent of Sicomines’ profits will be used to reimburse the JV’s mining investment loan, and then the remaining Eximbank infrastructure loans, as well as their respective accrued interest. • Finally, phase three will begin once the two Eximbank loans have been repaid.
During phase three, Sicomines will be paying taxes to the Congolese government in accordance to the DRC’s 2002 Mining Code."
INFRASTRUCTURE COMPONENT
THE INFRASTRUCTURE-FINANCING component of the deal is tied to the mine’s production. The infrastructure loan is capped at US$ 1.053 billion until the start of phase two, when the balance of the US$ 3 billion loan will be made available. Many sources have revealed that US$ 800 million had been spent on infrastructure projects by 2015.
Chinese have already received a large copper & cobalt mine, the USD$3b infrastructure for resource financing pack is essentially paid by DRC, not Chinese, because DRC needs to pay back.
ALL IMO.
AVZ Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
