The Serbian Zijin gold mine, a wholly owned subsidiary of Chinese-backed Zijin Mining, has obtained permission from the Serbian government to carry out mining activities at the Cukaru Peki copper and gold mine, part of the Timok project in the eastern part of the country.
According to reports, the country's mining ministry said that once the mine starts operation, Serbia will become the second largest copper producer in Europe.
Cukaru Peki was originally scheduled to start production in the summer of 2021, with initial average copper production of 91000 tons per year and annual gold production of about 200000 ounces.
The mine is now expected to start production in the fourth quarter of this year, gradually increasing production until it reaches a peak of 135000 tons of copper a year.
The Zambian government estimates that the country's booming mining industry will begin to account for 4-5 per cent of its GDP in less than a decade, a significant increase from the current 2 per cent.
Zijin's local subsidiary currently operates the country's only copper mine, RTB Bor. The company had to suspend work at the mine in April on suspicion of violating the country's environmental standards.
The unit was ordered to give priority to the completion of the sewage treatment plant in the mine to avoid polluting the Pek River, a tributary of the Danube.
Serbian Zijin Copper has pledged to invest US $408 million this year, up from US $360 million in 2020, to overhaul and expand its four mines and one smelter.
The plan also includes improving environmental protection in the heavily polluted Boer region of eastern Serbia.
China has spent billions of euros in Serbia, mainly in the form of soft loans to finance road and energy projects. These investments are part of the "Belt and Road Initiative" initiative, which aims to open up new foreign trade ties for local companies.
