Zijin News - On April 11, Zijin Mining released its Q1 financial report. In the first quarter of 2022:
● Revenue reached RMB 64.771 billion, up 36% YOY;
● Earnings totaled RMB 8.911 billion, up 105% YOY; and
● Net profit attributable to shareholders of the parent company stood at RMB 6.124 billion, up 144% YOY.
The group’s output of its main metal products, mined copper in particular, has maintained rapid growth this year, thanks to the commissioning of three major mines last year - the Upper Zone of the Čukaru Peki Copper and Gold Mine in Serbia, the Kamoa-Kakula Copper Mine, and the Julong Copper Mine in Tibet.
In the first quarter, Zijin Mining produced 194,000 tonnes of mined copper, 13.1 tonnes of mined gold, and 108,000 tonnes of mined zinc, up 53%, 17%, and 12% year-on-year respectively.
The gross margins of Zijin’s mining affiliates rose 3.87 percentage points year-on-year to 61.12%, and the comprehensive gross margins grew 2.36 percentage points to 17.32%.
Meanwhile, a number of key construction projects are well underway.
● On March 20, the first lithium project of Zijin Mining, the Tres Quebradas salar brine project, commenced construction. Phase 1 of the project is scheduled to begin production by the end of 2023, with an annual designed output of 20,000 tonnes of batter-grade lithium carbonate. Zijin will continue to optimize its process, to improve the recovery and production of lithium. The feasibility study of Phase 2 are being carried out concurrently, to ramp up the project’s production as quickly as possible.
● On March 21, hot commissioning of the Phase-2 3.8Mtpa concentrator plant of the Kamoa-Kakula Copper Mine began, which was four months ahead of schedule, and the concentrator has already reached its nameplate capacity. The one-year debottlenecking program of Phase 2 will see Kamoa-Kakula increase the combined processing capacity of Phase 1 and Phase 2 to 9.2 million tonnes per annum, up from 7.6 million tonnes per year. The combined annual copper production will then exceed 450,000 tonnes, making Kamoa-Kakula the fourth-largest copper mine in the world. Phase 3 is scheduled to begin production in the fourth quarter of 2024, as its engineering and early work advances quickly. The construction of the 50Ktpa smelter is making solid progress.
● Serbia Zijin Copper is working on the 40Ktpd upgrading program of the Veliki Krivelj Mine, which is expected to begin production in the second quarter of 2022. This will add 35,000 tonnes of mined copper per annum to the company’s production after the upgraded plant reaches its nameplate capacity.
● At Norton Gold Fields, the 5Mtpa Low-grade Ore Processing Program of Binduli North will come on stream in the third quarter of 2022, and will produce 2.5 tonnes of mined gold per annum when its designed capacity is reached. The company’s Refractory Gold Project has also started construction, with production scheduled by the end of 2022.
● Solid progress are being made in a number of key projects, such as core project for block caving at the Lower Zone of the Čukaru Peki Copper and Gold Mine of Serbia Zijin Mining, the block caving project of the Jama Mine of Serbia Zijin Copper, and Phase 1 underground mining project of the Aurora Gold Mine.
● Phase 1 of the Julong Copper Mine commenced production in December 2021, and preparations for the early work of Phase 2 are now underway.
● Shanxi Zijin is advancing its upgrading and expansion project for smart mining and processing operations, which will add a throughput of 6,000 tonnes per day. Construction of the core parts of the project will be completed in Q2 2022. The subsidiary’s annual production of gold will grow by 3 to 4 tonnes once the project reaches its nameplate capacity.