China’s top producer of gold and copper, Zijin Mining, has stated that it will boost its output of copper by 50% by 2028. This move is a reaction to the current high demand for copper, which has been driven by price increases and global trends toward green energy. Zijin Mining disclosed in a thorough update to its production prediction that it hopes to grow copper production to 1.22 million tonnes in 2025, a 4% rise over its prior estimates. The corporation intends to increase its output even further by 2028, with a target of 1.5 to 1.6 million tonnes. The purpose of this significant increase is to take advantage of the recent price surge and the predicted limitations in copper supply.
The state-owned company, which is traded on the Hong Kong stock exchange with the ticker symbol HKG: 2899, is well known for being China’s top producer of both copper and gold. The company’s potential for capacity development and the favorable market fundamentals underpin the modification in its production forecast.
At the moment, Zijin is expanding the capacity of a number of major mining projects, such as the Julong copper project in Tibet. One of the major initiatives Zijin is concentrating on to reach its higher production targets is this project. In order to greatly increase output, the company is also actively seeking the growth of its mining operations in Serbia and the Democratic Republic of the Congo. These developments are intended to be accelerated.
Zijin has stated that it plans to buy “ultra-large mines or mining firms with worldwide reach,” in addition to growing its current mines. Its objective to strengthen its position in the international metals market and guarantee a consistent rise in production capacity is in line with this approach.
The state of the market emphasizes how urgent it is to boost copper production. Because many of the current mines are too old to fulfill the rising demand, copper prices are almost at an all-time high. The global shift to green energy technologies, which significantly rely on copper for manufacturing, is the main factor driving this demand.
Recent industry developments, such as First Quantum Minerals’ (TSX: FM) forced closure of its Cobre Panama mine and Anglo American’s (LON: AAL) reduction in production guidance, have made supply constraints worse. Three of the top ten South American copper mines are operated by Anglo American, whose lower-than-expected output projection has tightened the world’s supply of copper.
Zijin Mining’s calculated reaction to these obstacles demonstrates its proactive approach in not only taking advantage of the current favorable market conditions but also making sure it maintains a prominent position in the global copper supply chain. The business’s aspirational goals demonstrate its dedication to growing its global footprint in the mining sector and its readiness to address the needs of an increasingly energy-conscious world.
