新闻资讯
新闻资讯

China's largest world-class porphyry copper mine has officially started production, with an annual copper output expected to exceed 600,000 tons. Where does it rank globally?

Time

2021-12-30 12:19

Source:

12Month27Day,According to the announcement from Zijin Mining, its subsidiary, China's largest world-class porphyry copper mineQulong Copper MinePhase I project beneficiation systemhas officially commenced production,successfully achievingthe overall goal of being completed and put into production by the end of 2021.According to reports,after the commissioning of Phase I of Qulong Copper Mine, combined with the output of the Zhibula Copper Mine, Julong Copper Industryis expected to produce 120,000 to 130,000 tons of copper in 2022; after reaching production capacity in Phase I, the annual copper production is about 160,000 tons.

 

   
In June 2020, Zijin Mining acquired 50.1% of the shares of Julong Copper Industry for approximately 3.88 billion yuan, taking control and leading operations. . Julong Copper Industry owns three mining rights: Qulong polymetallic mine, Rongmucuo copper mine, and Zhibula polymetallic mine, with registered copper metal reserves 10.72 million tons, with associated molybdenum metal reserves of 570,000 tons. Among them, Qulong polymetallic mine and Rongmucuo copper mine are part of the same ore body, and they are currently applying for a merger of mining rights. After the merger, the mine will be renamed Julong Copper Mine, which is the largest world-class porphyry copper mine in China.
 
Currently, Julong Copper Industry focuses on the comprehensive development and utilization of low-grade resources. The company plans to implement Phase II and Phase III projects in stages. If the projects are approved, it could ultimately achieve an annual ore extraction of about 200 million tons,with annual copper metal production exceeding600,000 tons. .
 
In an era where the voice of global copper industry oligarchs is becoming increasingly significant, the commissioning of Julong Copper Industry undoubtedly injects a"booster" into the security of China's copper resources.
 

1. Production ranks among the top three in the world

 

According to overseas website Kitco statistics, in 2020, the top ten copper mines in the world produced 5.016 million tons of copper, accounting for about 25% of the global total production, an increase of 3 percentage points from the previous year, indicating a growing concentration of global copper mine supply. Among them, the Escondida copper mine in Chile produced 1.156 million tons of copper, making it the largest copper mine in production globally and the only copper mine with production exceeding one million tons, accounting for about 6% of global copper production. The mine opened in 1990, is controlled and managed by BHP (57.5%), with Rio Tinto (30%) and Japan Escondida Company (12.5%) as other co-owners.  
 

 
The Collahuasi copper mine is the second largest copper mine in Chile and globally, 2 020 with an annual copper production of629,000 tons, jointly owned by Anglo American (44%), Glencore (44%), and Japan's Mitsui Group (12%). Most of the copper concentrate produced by the Collahuasi copper mine is sold to Chinese smelters for further refining.
The third-ranked Morenci copper mine is the largest copper mine in North America , jointly owned by Freeportand Sumitomo.
 
If calculated by2 020 annual production, Julong Copper Industry's copper output will exceed the Morenci copper mine, ranking among the top three globally. From a dynamic perspective, all of the top ten copper mines in the world are"old mines" that have been developed and operated for many years, facing various issues such as declining grades, resource depletion, and transitioning from open-pit to underground mining, making the potential for production increases significant for Julong Copper Industry.  
 
Important guarantee for China's copper resources
 

 

 

From the perspective of the equity of the top ten copper mines in the world in 2020, the top ten copper mines globally are almost entirely divided among Codelco, Glencore, BHP, Freeport, and Japanese consortiums.
 
Codelco owns the fourth-ranked El Teniente copper mine and the sixth-ranked Chuquicamatacopper mine. ; Glencore owns the second-ranked Collahuasi copper mine with 44% equity and the eighth-ranked Antamina with 33.75% equity. ; BHP ownsthe world's largest copper mine, the Escondida copper mine (57.5%) and the eighth-ranked Antamina copper mine (33.75%). ; Freeport ownsthe third-ranked Morenci copper mine, the ninth-ranked Cerro Verde copper mine, and the tenth-ranked Grasberg. It is worth noting that among the top ten copper mines in the world, Japanese conglomerates hold shares in five mines, which are:the first-ranked Escondida copper mine (12.5% equity); ; .
 
the second-ranked Collahuasi copper mine (12% equity); the third-ranked Morenci copper mine (equity not specified);
 
five mines, which are: the eighth-ranked Antamina copper mine (10% equity);
 
five mines, which are: 2的科亚瓦西Collahuasi铜矿（12%权益）;
 
five mines, which are: 3的莫伦奇Morenci铜矿（权益不详）；
 
five mines, which are: 8的安塔米纳Antamina铜矿（10%权益）；
 
five mines, which are: Cerro Verde copper mine (21% equity).
 
No copper mines from China made the list, among which Minmetals Resources' PeruLas Bambas copper mine In 2019, it ranked 8th in the world with a production capacity of 383,000 tons, and was the only Chinese copper mine to make it into the global top ten. However, in 2020, due to local environmentalists blocking roads, the transportation routes for the copper mine were obstructed, causing it to drop out of the global top ten. 2 021 By the end of the year, Las Bambas copper mine the shutdown was lamentable.
 
In the future, Zijin Mining's Kamoa copper mine, the Giant Dragon copper mine, and Minmetals Resources will Las Bambas copper mine , with the three major projects providing support, significantly enhance China's pricing power for copper resources.  
 

 
The demand for new energy is boosting, but we must also be wary of disorderly expansion.
 
In the post-pandemic era, major mining companies have gradually recovered from the pandemic, with copper production showing a significant increase compared to last year. Moreover, as copper prices have continued to rise and reached historical highs this year, major miners have accelerated their production pace, and the speed of resolving various issues at the mines has also been faster than in previous years, leading to a continuous increase in copper concentrate output.
 
In the past two years, global copper concentrate Although it is in a tight balance, there are no significant highlights in domestic demand except for the electronics and new energy sectors. The easing of copper mine shipments and the gradual release of newly expanded production capacity may lead to a decline in copper prices.
 
Compared to Kamoa copper mine, which also belongs to Zijin Mining, the resource endowment of Giant Dragon Copper is relatively poor, and costs are higher. If copper prices drop significantly, it may face cost pressures, while Kamoa and Giant Dragon Copper will operate with"two legs". Zijin Mining may be able to stand on its own.  

*Source: Mining Weekly

Prev

In-depth Review: The Top Ten Mining Policies Worldwide in 2021

Next

In 2022, global coal demand reached 8.025 billion tons, setting a new historical high!?

RELATED INFORMATION

Maxus Mining acquires antimony and tungsten projects in British Columbia

Maxus Mining announced Thursday it has entered an option agreement to acquire a 100% interest in one tungsten and three antimony exploration properties in British Columbia covering more than 4,100 hectares

Lundin targets top-ten copper miner status in bold expansion plan

Canada’s Lundin Mining has unveiled a strategic growth plan designed to catapult the company to the status of the world’s top ten copper producers.

SolGold to start mining copper from Cascabel in early 2028

SolGold is fast-tracking the development of its flagship Cascabel copper-gold project in northern Ecuador, with first production now expected in 2028, three to four years ahead of its original schedule

Teck approves $2.4B expansion of Highland Valley Copper

Teck Resources’  board has approved a C$2.1–C$2.4 billion ($1.6 -$1.8 bn) project to extend the life of its Highland Valley Copper Mine (HVC) in British Columbia, securing operations at Canada’s largest copper mine into the mid-2040s.

Ariana Resources nears production at Tavsan gold mine

Ariana Resources soared after the Australian gold developer announced the imminent start of production at the Tavsan gold mine in Türkiye .

Northern Minerals expands mining leases at Browns Range

Heavy rare earths company Northern Minerals has been granted a new mining lease that more than doubles the tenure area at its Browns Range project, in Western Australia’s East Kimberley.