Zijin Mining Set to Acquire La Arena Copper-Gold Mine in Peru

Zijin Mining

Zijin Mining, one of China’s leading diversified metals mining companies, is nearing the completion of its acquisition of the La Arena copper-gold mine in Peru. This strategic move is aimed at bolstering the company’s copper and gold production capabilities, further cementing its position as a global leader in the mining sector.

Key Details of the Acquisition

Zijin Mining will acquire a 100% stake in the La Arena mine from Pan American Silver, a Canada-based mining firm. The transaction has already received approval from both Chinese and Canadian authorities, although final closure remains contingent upon the completion of procedural formalities.

The La Arena mine, located in the La Libertad region of northern Peru, is situated within a rich porphyry copper-molybdenum-gold metallogenic belt. It benefits from excellent logistical connectivity, being approximately 175km from the port of Salaverry and 150km from Trujillo, one of Peru’s largest cities.

Expansion and Production Outlook

Zijin plans to explore a second-phase expansion project at the La Arena mine. Current reserves stand at 2.785 million tonnes of copper (0.334% grade) and 196.5 tonnes of gold (0.236 g/t grade).

• First Phase: Currently producing 3 tonnes/year of gold, with an expected remaining service life of three years.
• Second Phase: Designed to produce 100,000 tonnes/year of copper and 3.8 tonnes/year of gold over a 19-year lifespan, following a three-year construction period. However, Zijin has not yet disclosed the timeline for the project launch.

Zijin’s Broader Growth Strategy

This acquisition aligns with Zijin’s broader strategy to significantly increase its copper output. In January-September 2023, Zijin produced 789,459 tonnes of mined copper, reflecting a 5% year-over-year increase, while refined copper output grew 5.6% to 574,772 tonnes.

Additionally, Zijin is investing heavily in projects in Tibet, including:

• Zhunuo Copper Mine: Expected to begin operations in June 2026, with a production capacity of 76,000 tonnes/year.
• Julong Copper Mine: The second phase is slated for Q1 2026, boosting copper production to 300,000–350,000 tonnes/year from 154,000 tonnes in 2023. A third phase is planned to further expand production to 600,000 tonnes/year.

The company anticipates increasing its copper production by 50% by 2028, reaching a target originally set for 2030. This aggressive timeline underscores Zijin’s ambition to solidify its position in the global copper market.