Anhui Foreign Economic Construction Group Explained

Anhui Foreign Economic Construction (Group) Co., Ltd.
Native Name:安徽省外经建设(集团)有限公司
Type:Private
Industry:Civil engineering, mining
Location City:Hefei, Anhui
Location Country:China
Area Served:Worldwide

Anhui Foreign Economic Construction Group (AFECC) is a Chinese construction and mining company with an international focus that includes 14 overseas subsidiaries in Asia, Europe, Africa, the Caribbean, and Pacific Islands.[1] Based on the value of 2011 deals, the company ranks among the top 225 contractors in terms of international projects.[2]

In its charitable giving, the company contributed $1.5 million towards a week long phase of a medical mission called the "Brightness Trip", in which a medical team visiting the hospitals of Malawi treated patients with cataract conditions.[3]

Due to a high debt burden, the company defaulted on RMB 6.7 billion in bonds in June 2019. Chinese regulators were slow to recognize the risk, rating the company's bonds AA+ a month before the default.[4]

Operations

The company develops diamond mines in the DRC and Zimbabwe.[5]

Costa Rica

The company built the National Stadium of Costa Rica.

Democratic Republic of the Congo

In the DRC, the company entered into a 50-50 joint venture agreement with the government to develop a mine in eastern Kasai that could produce 6 million carats by 2016. The terms of the agreement were publicly revealed in March 2013 and specified that the company would contribute $4.2 million in equity, provide a signing bonus of $61 million, and invest in various infrastructure projects amounting to $100 million throughout the country. The planned infrastructure projects include the construction of a 4.6- megawatt hydropower plant near Tshibwe; a new building for the national diamond regulator; and assistance in bringing a loan from the Chinese government to fund a 15-megawatt hydroelectric plant at Tubi Tubidi and a road from the plant to Mbuji-Mayi.

Mozambique

The company built the Estádio do Zimpeto football stadium in Mozambique, as well as a cargo terminal at Maputo International Airport.

Zimbabwe

See also: Marange diamond fields.

In Zimbabwe, the company launched a joint venture, Anjin together with Zimbabwe Army's Matt Bronze Enterprises.[6] Ajin began mining in July 2010, and received permission from the Kimberly Process to export in 2011 after stockpiling 3 million carats.[7] In 2016, Robert Mugabe accused Anjin out stealing the country's diamonds and ordered all diamond mining to cease.[8] By 2020, Anjin reportedly returned to the country, but there were no reports of Anjin's diamond production from Zimbabwe's Chamber of Mines.[9]

Notes and References

  1. Web site: Corporation Information . Anhui Foreign Economic Construction Group . 2013-09-22 . dead . https://web.archive.org/web/20131219084736/http://www.afecc.com/en/about.asp . 2013-12-19 .
  2. Web site: The Top 225 International Contractors. Engineering News Record. 2013-09-22.
  3. Book: Yu, Guanghua. Rethinking Law and Development: The Chinese experience. 2013. Routledge. 9780415640367. 230.
  4. Book: Clifford, P.G. . The China Paradox: At the Front Line of Economic Transformation . De Gruyter . 2021 . 978-3-11-072423-3 . 2022-10-10 . 164.
  5. News: Anhui Construction, Congo Plan to Take Diamond Company Public. Bloomberg. Mar 28, 2013.
  6. Web site: Matimaire . Kenneth . Zimbabwe: Army-Linked Anjin Grabs Richest Diamond Claim . allAfrica.com . 2021-01-15 . 2022-10-10.
  7. Web site: Zimbabwe: Anjin Investments is Now Top Diamond Producer in the World . Rough&Polished . 2022-10-10.
  8. Web site: Bhebhe . Nqobile . Zimbabwe: $15bn diamond heist by Chinese company could hurt relations . The Africa Report.com . 2016-03-07 . 2022-10-10.
  9. Web site: MAJONI . TAWANDA . Corruption watch: What’s Anjin doing with our diamonds? . The Zimbabwe Independent . 2022-04-17 . 2022-10-10.