West China Cement joins Mozambican cement works venture

West China Cement Ltd announced on Friday that a subsidiary and three other companies have set up a joint venture to open a cement works in Mozambican capital Maputo with the capacity to produce 5,000 tonnes of cement a day.

West China Cement told the Hong Kong Stock Exchange that the subsidiary, West International Holding Ltd, would invest 60 million meticais (about US$974,000) in a stake of 60 percent of the joint venture, and lend the joint venture another US$50 million.

The announcement says the holder of the second-biggest stake, Mozambique’s CIF-MOZ SA, will contribute assets such as a coal mine and buildings and rights to exploit them, and the unfinished cement works that already occupies the site.

Oceanic Star Ventures Ltd of the Seychelles will hold 14 percent of the joint venture and Guhava Serviços SA of Mozambique will hold five percent, West China Cement says.