Jiangxi Copper Eyeing Mine Expansion to Reduce Costs

SHANGHAI, Mar. 2 (SMM) – Jiangxi Copper Corporation (JCC), planned to raise capital via private placement for copper mine expansion, cnmn. com reported. 

This move appeared illogical when the company and other nine large Chinese copper smelters announced at the end of November 2015 to jointly cut refined copper output by 350,000 tonnes in 2016.

“The production cuts announced in late 2015 target cathode copper smelting, while fund raising this time targets copper mines, which are two completely different concepts,” an executive from JCC told China Economic Net. 

The expansion could help further improve raw material self-sufficiency rate and reduce costs, JCC added. 

The giant Chinese copper smelter announced on February 25 to raise about 7 billion yuan ($1.07 billion) to expand mine capacity and replenish working capital. 

A proportion of the capital raised will be used for phase three expansion at Chengmenshan copper mine, technical upgrade at Yinshan mining site, and Tieluoshan tailings pond construction at Dexing copper mine.    

Once completed, beneficiation capacity at Chengmenshan copper mine will expand 10,000-tpd to 17,000-tpd, beneficiation capacity at Yinshan mining site will increase from original 5,000-tpd to 13,000-tpd, and pond capacity at Tieluoshan tailings pond will expand 1 billion cubic meters.   

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