China is looking to invest $90 million into coal production in South Africa as part of a deal between Baobab Mining & Exploration Pty. Ltd. and China Railway International Group made during President Cyril Ramaphosa's state visit in China, the City Press reported Sept. 3.
The deal would go into the production of hard coking coal and thermal coal through a mining project along the Soutpansberg coalfields in Limpopo. The mining project would be the lone producer of hard coking coal in the country. Resources are estimated at about 344.8 million tonnes over a 46-year timeline, according to the report.
President Ramaphosa's visit also resulted in a roughly $1.1 billion investment deal with the Bank of China. The bank plans to work with South Africa's Department of Trade and Industry for programs in the country's special economic zones and industrial projects, with projects in Musina and Makhado, Limpopo, having priority.
The department also struck a deal with the National Development and Reform Commission of the People's Republic of China, which includes the construction of a 4‚600-MW coal-fired power plant over six years, as well as investments in stainless steel, ferromanganese and ferrochromium plants.