Beijing to Pump $877M into SA's Platinum Sector


"The investment will be China's second largest in Africa."

After raiding iron ore mines across the world to make investments, China is now scouting for platinum producers in South Africa.

Recently, China has decided to pump in $877 million into South Africa's platinum sector. In a deal backed by the China-Africa Development Bank, Chinese state-owned mining firm, Jinchuan, will acquire a 51% stake in the small platinum developer and develop its Frischgewaagd-Ledig mine.

A long-term supply agreement entitles the state firm to all of the platinum that is subsequently produced at the Rustenburg facility.

Platinum is mainly used in the production of catalytic converters, a device that reduces the toxicity of automobile emissions.

Wesizwe shelved a plan to develop the Rustenburg mine last year as the global recession eroded demand.

The investment will be China's second largest in Africa. In 2007, Beijing acquired a 20% stake in South Africa's largest bank, Standard, for $5.5 billion.

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