Timok Copper&Gold Mine
Ownership: The Upper: 100%; The Lower: 46%
Up to March 12, 2019, Zijin Mining Group Co., Ltd. ("Zijin" or "Zijin Mining") completed the 100% acquisition of Nevsun Canada. According to the agreement, Zijin has a 100% interest in the upper belt of the Timok Cu&Au Mine formerly held by Nevsun and a 46% interest in the lower belt after the feasibility study of the upper belt, the other 54% is held by Freeport-McMoRan Exploration Corporation. Details as follows:
The Timok Cu&Au Mine is located in Bor, eastern Serbia, 5km south of the city and about 250km southeast of the capital, Belgrade. The Timok Mine is a Cu&Au ore body with different ore types associated with the upper and lower genesis: The upper mine is a high-grade massive gold&copper deposit and the lower part is a super-large porphyry copper deposit. The project has not yet been developed and the upper mine belt is in the feasibility study stage.
According to《Timok Project NI43-101 Technical Report》, up to April 24, 2017, it had proven and controlled resources of 28.7 million tons of ore which contained 1.05 million tons of copper with an average grade of 3.7%, and 2.2 million ounces of god with an average grade of 2.4 g/ton; the inferred resources were 13.9 million tons of ore which contained 230,000 tons of copper with an average grade of 1.6%, and 420,000 ounces of gold with an average grade of 0.9 g/ton. Up to June 19, 2018, the inferred resources of the lower belt were 1.569 million tons of ore which contained 14.3 million tons of copper with an average grade of 0.86%, and 9.6 million ounces of gold with an average grade of 0.18 g/ton. As a whole the Timok Mine had 15.58 million tons of copper resources, and 2.22 million ounces(380 tons)of gold resources. According to the final equity calculation, Zijin Mining's equity copper in the Timok Mine is 7.86 million tons, and gold 219 tons.
Timok insists on creating new employment opportunities, financing education, raising environmental awareness, supporting charity and local civil society organizations as the main means, to fulfill social responsibilities and contribute to the local communities, in order for better social influence in the project site and in Serbia. It became a member of the Serbian Business and Industry Responsibility Forum in November 2018 and was honored for its outstanding contribution to the local communities at the 10th Anniversary of the Forum in December the same year.
The Timok project is an underground mine, constructed in two phases. The first phase will be 2 years with estimated total investment of USD 405.572 million. After completion, the estimated annual operating income is USD 637.749 million, cost 240.021 million, total profit 41.637 million and net profit 349.041 million.