China Backs $1.24 Billion TAZARA Rail Upgrade to Secure Copper Exports as US and EU Promote Lobito Corridor
Chinese mining, shipping, and logistics companies are joining forces on a $1.24 billion infrastructure project to modernize a major railway connecting Zambia’s copper belt to the port of Dar es Salaam on the Indian Ocean.
Leading copper producers CMOC Group Limited and Zijin Mining Group have partnered with state-owned construction giant China Civil Engineering Construction Corporation (CCECC) to rehabilitate the 1,860-kilometer rail line linking Zambia to Dar es Salaam.
The project focuses on upgrading the historic TAZARA Railway, a strategic corridor originally built in the 1970s with support from China under the leadership of Mao Zedong.
Structure of the Joint Venture
CCECC, which signed an agreement with the governments of Zambia and Tanzania in September to rehabilitate the railway, will hold an 80% stake in the joint venture responsible for the project.
The remaining shares will be distributed among four companies, each holding a 5% stake, including:
- A subsidiary of Zijin Mining Group
- A unit of CMOC Group Limited
- COSCO Shipping Holdings
- Jiayou International Logistics
According to project disclosures, Jiayou alone will invest approximately $62.2 million in the venture.
The partners will not only rehabilitate the rail infrastructure but also operate freight services along the corridor after modernization, including the acquisition of locomotives and container equipment.
Final implementation remains subject to regulatory approval from Chinese authorities.
Strategic Competition Over Critical Minerals
The investment comes amid intensifying geopolitical competition over supply chains for critical minerals in Africa.
The United States has recently moved to counter China’s dominance in the sector. In December, Washington concluded a bilateral minerals partnership with the Democratic Republic of the Congo, granting American companies preferential access to selected mineral resources.
The upgraded TAZARA railway is expected to compete directly with the Lobito Corridor, a major infrastructure initiative backed by the United States and the European Union.
That corridor connects the same copper-rich region of Central Africa to an Atlantic port in Angola.
A Critical Route for Regional Trade
Once completed, the rehabilitated railway is expected to significantly improve regional logistics by reducing reliance on long-distance trucking.
Currently, much of the mineral output from Zambia and the Democratic Republic of Congo is transported by road to ports, creating congestion, higher transport costs, and infrastructure wear. The upgraded rail system is projected to streamline exports, shorten delivery times, and enhance supply chain reliability for copper and other strategic minerals.
The governments of Zambia and Tanzania have granted CCECC a 30-year concession to operate the railway, signaling long-term confidence in the project’s commercial viability.
China’s Evolving Investment Strategy
The TAZARA modernization reflects a broader shift in China’s Belt and Road Initiative, which is increasingly relying on partnerships with private-sector firms operating under commercial models rather than purely state-funded projects.
Chinese mining companies already play a dominant role in mineral exports from the Democratic Republic of Congo, the world’s second-largest producer of copper and the leading supplier of cobalt used in electric vehicle batteries.
By contrast, Western firms particularly First Quantum Minerals and Barrick Mining Corporation account for the majority of copper production in neighboring Zambia.
Implications for the Regional Mining Economy
The modernization of the TAZARA railway is expected to reshape trade routes across Central and Southern Africa while deepening competition between major global powers seeking reliable access to critical minerals.
For regional economies, the project represents both an infrastructure upgrade and a strategic repositioning of transport corridors that will influence export flows, investment patterns, and geopolitical alliances for years to come.
