China is set to expand its copper mining activities in Serbia in response to the growing demand for the metal. The country is the largest gold miner and one of the leading copper producers globally. Zijin Mining Group, the Chinese mining giant, plans to increase the extraction of copper in its Cukaru Peki mine located in Eastern Serbia.
The Cukaru Peki mine was opened by Zijin Mining Group two years ago, and the company has already invested $678 million to bring the mine into operation. Now, China aims to further develop the mine by drilling almost two kilometers deeper to access additional reserves. The expansion will require an estimated investment of $3.5 billion to $3.8 billion, according to Branko Rakocevic, a senior Serbian official at the mine.
The mine, located in the Bor region in eastern Serbia, is divided into an upper and a lower zone. The upper zone produced 111,000 tons of copper and 152,000 ounces of gold last year. It has a projected capacity of 91,400 tons of copper and 2.5 tons of gold annually, with potential peak outputs of 135,000 tons of copper and 6.1 tons of gold. Once both zones reach their full capacity, the Cukaru Peki mine has the potential to make Serbia the second-largest copper-producing country in Europe.
The increasing demand for copper is driven by its crucial role in the global energy transition. Copper is used in renewable energy infrastructure such as wind turbines, power grids, and electric vehicles. As countries around the world strive to transition to a greener economy, the demand for copper is set to skyrocket. Consulting firm McKinsey predicts that annual copper demand will reach 36.6 million tons by 2031, while supply is expected to be around 30.1 million tons, creating a significant shortfall of 6.5 million tons.
China’s focus on copper mining in Serbia reflects its efforts to secure a steady supply of critical minerals for its growing green economy. The country has emerged as the top supplier of critical minerals, including copper, and is investing heavily in mining operations globally. The stability of the copper market and the long-term demand for the metal make it an attractive investment for China and other countries.
The expansion of copper mining in Serbia not only benefits China but also has the potential to boost the Serbian economy. The investment in infrastructure and the creation of jobs in the mining sector will contribute to the country’s economic growth. Furthermore, Serbia’s position as a major copper-producing country can enhance its trade and international standing.
In conclusion, China’s plans to expand copper mining in Serbia highlight the increasing demand for the metal in the global energy transition. This investment reflects the country’s focus on securing a stable supply of critical minerals for its green economy. The expansion of the Cukaru Peki mine presents an opportunity for Serbia to become a significant copper producer in Europe and stimulate its economic growth.
Source link
