This article first appeared on GuruFocus .
China is stepping deeper into Africa's copper logistics backbone, and the structure of this deal says a lot about control. CMOC Group Ltd. ( CMCLY ) and Zijin Mining Group Co. ( ZIJMF ) are partnering with China Civil Engineering Construction Corp. to upgrade the 1,860-kilometer Tazara railway linking Zambia's copper belt to Tanzania's Dar es Salaam port, in a project valued at $1.24 billion. CCECC will hold an 80% stake in the joint venture, while smaller 5% stakes are allocated to participants including Jiayou International Logistics Co., alongside units of the miners and COSCO Shipping Holdings Co.. The structure suggests China is not only financing infrastructure but also positioning itself to operate and control a key export route for critical minerals.
The timing comes as the US is trying to reshape access to African resources. Washington recently reached a minerals partnership with the Democratic Republic of Congo that gives American companies preferential access to some reserves, while backing the Lobito Corridor rail project connecting the same region to Angola's Atlantic coast. Against that backdrop, the Tazara upgrade could become a competing channel for copper and cobalt flows, particularly as CMOC and Zijin remain among the dominant exporters in Congo. The parallel development of these corridors suggests supply chains for battery materials could increasingly reflect geopolitical alignment, rather than purely cost-driven logistics.
What stands out is how the project will be run after construction. Tanzania and Zambia have granted CCECC a 30-year concession to operate the railway, with partners investing based on their stakes, including Jiayou's $62.2 million contribution. The consortium plans to upgrade infrastructure, acquire locomotives and containers, and shift mineral transport away from long-distance trucking routes. This model, blending state-backed and commercial participation, could reflect a broader shift in China's Belt and Road approach toward more commercially structured projects that still maintain strategic control over logistics networks.
