Tongli Cement ventures into Mozambique

Tongli Cement ventures into Mozambique
Published: 23 September 2011

Henan Tongli Cement plans to set up two joint ventures with two partners in Mozambique, reports according to a company filing.

The company will establish a joint venture with Biworld International to build a clinker production facility with capacity of 1500tpd, and cement grinding stations with a capacity of 500,000tpa in Muxungue and in Tete.

Investment in this joint venture is expected to hit US$99.29m, of which 35 per cent will be borne by shareholders, and the remainder will be obtained through bank loans.

Tongli Cement has an 80 per cent interest in this joint venture, while its partner holds the remaining 20 per cent equity.

In addition, Tongli Cement will establish a joint venture with China Mozambique Cement and Mining Development to build a clinker production facility with capacity of 1500tpd, and a cement grinding faciity with a capacity of 500,000tpa in Inhaminga.

Investment in this joint venture is expected to hit US$77.57m, of which 35 per cent will be borne by shareholders, and the remainder will be obtained through bank loans. Tongli Cement has an 80 percent stake in this joint venture.

According to Tongli Cement’s previous private placement plan, the company will invest a total of CNY1.18bn into two clinker production facilities with daily production capacity of 1500t, and in a cement grinding station.