(Yicai Global) Aug. 5 -- Norinco International Cooperation, a Chinese  construction engineering firm, will invest USD134.8 million to run  cross-border logistics business in southern Africa to take advantage of  the rising copper and cobalt mining industries in the region. 

Norinco will set up a project company with a registered capital of USD26  million in Johannesburg, South Africa, the Beijing-based firm said in a  statement. The equity will be divided according to a 90-10 ratio between  two of its units.

Southern Africa's copper and cobalt resources have attracted a lot of investment  from global mining companies, especially Chinese ones, in recent years  while the gap between logistics supply  and demand is huge, Norinco said. The venture will also drive the  development of Norinco's vehicle assembly and export business, it added.

The investment will be mainly used to buy vehicles, build stations, and  establish information systems for business management. The rest of the  costs will be covered by loans. 

Norince's share price [SHE: 000065] rose 2.4 percent to CNY8.4 (USD1.20) this afternoon.

Editor: Emmi Laine