Zijin Mining Group Company Limited(601899) (601899) it was announced on the evening of December 26 that the phase I project of Julong copper was completed and put into operation. At present, Julong copper is making an overall plan for mine development, focusing on the comprehensive development and utilization of low-grade resources. It plans to implement phase II and phase III projects in stages. If the project is approved by relevant government departments, it is expected to achieve an annual ore mining scale of about 200 million tons, becoming the largest copper mine in the world.
Zijin Mining Group Company Limited(601899) is a large multinational mining group, which is engaged in the exploration and development of gold, copper, zinc and other mineral resources around the world, moderately extends smelting and processing and trade finance business, and has a relatively complete industrial chain.
On June 8, 2020, Zijin Mining Group Company Limited(601899) announced that in order to further increase the company’s resource reserves, improve the supply capacity of domestic super large copper mines and realize the sustainable development of the company, the company plans to acquire 50.1% of the total equity of Julong copper held by Zanger group, Zangge Holding Company Limited(000408) , Zhongsheng mining, Shenzhen chenfangzi and huibaihong industry through Tibet Zijin, a wholly-owned subsidiary, The total consideration of this transaction is 3.883 billion yuan.
The announcement at that time showed that Julong copper was established in December 2006. Julong copper’s main business is copper exploration and development. It owns Qulong Copper Polymetallic Mine, rongmutola Copper Polymetallic Mine and zhibula Copper Polymetallic Mine. Among them, Qulong Copper Polymetallic Mine and zhibula Copper Polymetallic Mine have obtained mining license, rongmutola Copper Polymetallic Mine has obtained exploration license and completed detailed investigation, and is currently applying for mining license.
It is reported that Qulong copper polymetallic ore and rongmu Cuola copper polymetallic ore are a complete porphyry copper ore body; The zhibula copper polymetallic deposit is a skarn copper deposit. According to the recorded resource reserve report, the total amount of copper metal in the three mining areas is 7.9576 million tons, and the total amount of associated molybdenum metal is 370600 tons. At the same time, there are a large number of low-grade copper (molybdenum) resources in the porphyry body.
Julong copper has huge resource reserves and good development conditions, and has the conditions to form a world-class super large copper mine (160000 tons of copper per year in phase I project and 260000 tons of copper per year in phase II project). Zijin Mining Group Company Limited(601899) believes that controlling and developing the copper resources of Julong copper can greatly increase the company’s copper resource reserves and product output, improve the domestic and foreign pattern of the company’s resources and products, lay a solid foundation for the company to realize “two wheel drive” at home and abroad in the “post epidemic” global mining development pattern, and is of great strategic significance to the sustainable and steady development of the company.
Zijin Mining Group Company Limited(601899) the announcement on June 8, 2020 also said that Julong copper has obtained most of the certificates required for construction and production, the construction investment progress of Qulong phase I is nearly half, and the general layout, process layout and equipment selection are basically reasonable, which can meet the needs of large-scale and long-term development of the mine; Due to the financial problems of the controlling shareholders, the company will restart the construction and implement optimization as soon as possible after the acquisition, and strive to be completed and put into operation by the end of 2021. At the same time, the company will accelerate the operation of the basically completed zhibula Copper Polymetallic Mine project and quickly generate cash flow and profits. Julong copper currently has a high debt level. After the completion of this acquisition, it will be included in the scope of the company’s consolidated statements. It will arrange to increase capital to ensure the capital demand necessary for project construction, and the company’s asset liability ratio will rise in the short term. However, with the completion and operation of the project, especially after the project is profitable, the asset liability ratio of the company will decline rapidly.
Zijin Mining Group Company Limited(601899) the latest announcement on the evening of December 26 shows that through the joint efforts of many cooperative units, the beneficiation system of phase I project of Qulong copper mine was jointly commissioned at the end of October 2021 and officially put into production on December 27, successfully realizing the overall goal of being completed and put into operation by the end of 2021. After the phase I project of Qulong copper mine is put into operation, coupled with the output of zhibula copper mine, Julong copper is expected to produce 120000-130000 tons of copper in 2022; After the first phase of the project is completed, the annual output of copper is about 160000 tons.
According to Zijin Mining Group Company Limited(601899) in the latest announcement, Qulong Copper Mine and rongmucola copper mine are the same porphyry copper ore body, and are currently applying for the merger of mining rights; After the merger, the mine name will be renamed Julong copper mine, which is the largest world-class porphyry copper mine in China. There are a large number of low-grade copper resources with a grade of about 0.2%, and the total amount of resources (according to the boundary grade of 0.15%) exceeds 20 million tons. At present, Julong copper is making an overall plan for mine development, focusing on the comprehensive development and utilization of low-grade resources. It plans to implement phase II and phase III projects in stages. If the project is approved by relevant government departments, it is expected to achieve an annual ore mining scale of about 200 million tons, becoming the largest copper mine in the world.
Zijin Mining Group Company Limited(601899) said that the commissioning of Julong copper phase I project will have an important impact on the increment of the company’s mineral copper, further improve the company’s profitability and provide strong support for the company’s leapfrog growth.
(Securities Times · e company)
