Zambia state firm, Chinese partner revive century-old lime plant
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Zambia's state investment firm ZCCM Investments Holdings said on Wednesday that it has partnered with Chinese-owned Wonderful Group to revive a near-century-old industrial-scale lime and cement production facility in the country's Copperbelt region. The partnership marks a significant step toward restoring industrial capacity in Zambia's mining heartland.
ZCCM-IH and Wonderful Group will develop and operate the integrated lime and cement production facility through a new joint venture vehicle named Ndola Lime Limited. The joint venture will be backed by $30 million of new investment from Wonderful Group, according to ZCCM-IH's official statement.
The move is meant to restore the 95-year-old facility to supply critical inputs to Zambia's copper, construction, and agricultural sectors. Operational difficulties at the facility led to insolvency in 2018, leaving the plant idle for several years until this revival agreement.
The facility's revival will be implemented in three phases, with the first phase focused on the construction and commissioning of a lime production plant with a capacity of 600 metric tons per day. This initial phase will establish the core production capability for lime output.
The second phase will deliver either a cement processing plant or a second lime production plant, ZCCM-IH said, depending on market demand and operational priorities. The third phase will be further expansion based on market conditions, allowing flexibility for future growth.
Wonderful Group will hold 55% of Ndola Lime through a $25 million equity contribution and a $5 million shareholder loan, giving the Chinese partner majority control. ZCCM-IH will hold the remaining 45% interest via the contribution of operating assets and the write-off of $9.8 million of historic debt owed by the facility.
