Zimbabwe+Strategic+Minerals

= It Is Highly Likely Chinese Investments In Strategic Minerals In Zimbabwe Will Occur Over The Next Five Years, Specifically In Diamonds, Coal, Uranium, And Platinum =

Executive Summary:
Over the past five years, Zimbabwe has received over USD 5 billion out of the USD 41 billion in Chinese strategic mineral investments in sub-Saharan Africa. It is highly likely that future Chinese investments in strategic minerals will occur in Zimbabwe over the next five years specifically in diamonds, uranium, platinum, and coal. The Marange Diamond mine is expected to be the worlds biggest producing diamond mine. In 2013, it is expected that the mine will produce 16.9 million carats.

Discussion:
Anjin is a joint mining firm between China's Anhui Foreign Economic Construction Company Limited and the Zimbabwe Mining Development Corporation and is now the worlds largest diamond producer. They have invested over USD 400 million in the Marange mine fields which has seen labor disputes over the past couple of years. The China Africa Sunlight Energy Ltd. plans on investing USD 2.1 billion to develop coal mines and build a 2,100-megawatt plant. The company has also invested USD 20 million on exploration rights to search for coal and expects the plant to be operational by 2015.

Zimbabwe also hold the second highest amounts of platinum reserves after South Africa. China's EXIM bank in 2011 offered USD 3 billion for Zimbabwe's platinum reserves but the deal was met with skepticism due to certain conditions. China is continuing exploration and investments in platinum mines in Zimbabwe. In 2012, The China Uranium Corporation (CNNC) was granted rights to begin mining Uranium deposits in the Kanyemba area of Zimbabwe. It is unknown how much the CNNC has invested into the region for mining uranium but Zimbabwe is targeting to have domestic nuclear energy by 2020.

Analytic Confidence:
Analytic confidence for this assessment is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu