Expansion of Jinchuan's Copper Refining Operations Bolsters Production Capacity

Jinchuan Group

Jinchuan Group, a leading diversified metals producer in China, is set to significantly expand its copper refining capabilities with the launch of the second phase of its refinery in Jinchang city, Gansu province, by year-end. This development is part of Jinchuan's strategic efforts to enhance its position in the global copper market.

Enhancing Copper Refinery Capacity

The Jinchuan copper refinery project is designed in two phases, with the first 200,000 tons per year phase having commenced in June. The forthcoming second phase will double the facility's capacity to 400,000 tons per year. Additionally, Jinchuan has already operationalized a copper anode smelter with a capacity of 357,800 tons per year in September, which is anticipated to consume 1.4 million tons per year of copper concentrates.

Strategic Developments in Copper Production

Alongside the expansion in Jinchang, Jinchuan is progressing with a 300,000 tons per year copper cathode refinery project in Fangchenggang city, Guangxi province. This facility focuses on processing copper anodes and is expected to handle 1.38 million tons per year of copper concentrates with a copper content of 22 percent. The launch date for this refinery remains undisclosed.

Upon completion of these projects, Jinchuan's total production capacity for copper cathodes will surge to 1.4 million tons per year, a significant increase from the current capacity of 700,000 tons per year. This expansion reflects Jinchuan's commitment to not only boosting production but also to responding to global copper demand more effectively.

Market Impact

The expansion of Jinchuan’s refining operations is likely to influence market dynamics, particularly in terms of spot treatment and refining charges (TC/RCs) for copper concentrates. Market participants anticipate that the increased supply of refined copper may lead to reduced TC/RCs, affecting profitability for miners and smelters globally.