China’s Top Copper Miner to Ramp Up Output as Supply Risks Mount

(Bloomberg) -- China’s leading copper miner raised its output guidance at a time when prices have been rallying toward a record on expected deficits.

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Zijin Mining Group Co. aims to boost mined copper production to 1.22 million tons in 2025, up 4% from a previous target, according to a filing to the Shanghai Stock Exchange late Thursday. Output for 2028 would surge to between 1.5 and 1.6 million tons, it said, which would be up about 50% from 2023.

The Fujian-based company said it made the revisions given its positive fundamentals and the potential to increase capacity. Zijin will accelerate development of existing mines in Tibet, Congo and Serbia while also sourcing big mining projects globally, it added.

Global copper prices are near all-time highs as aging mines are predicted to struggle to keep pace with demand fueled by the world’s green transition. The market has tightened significantly this year following the sudden shutdown of First Quantum Minerals Ltd.’s Cobre Panama mine and a cut to output guidance by Anglo American Plc.

Read More: New York Copper Squeeze Eases as Exchange Hikes Margins

Zijin also revised down its lithium carbonate output to 100,000 tons in 2025 from 120,000 tons previously, in response to plunging prices, it said in a separate statement on WeChat.

Meanwhile, its mined output of gold will increase to 85 tons in 2025 and to 100 to 110 tons in 2028, from 68 tons in 2023, it said.

--With assistance from Annie Lee.

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