Chinalco Boosts Copper Anode Capacity Amid Rising Scrap Use

Chinalco

Major Upgrade at Dianzhong Smelter Targets Increased Output and Efficiency

China’s Chinalco has commenced operations of a new copper anode furnace at its Dianzhong smelter in Chuxiong, Yunnan province. This initiative is part of a 515 million yuan ($70.2 million) upgrade project. The upgrade aims to elevate the smelter’s copper anode production from 191,700 tonnes per year to 249,800 tonnes per year. Furthermore, a 210,000 tonnes per year copper cathode refining facility is set to launch in May.

Increased Scrap Integration

The Dianzhong smelter, previously reliant on copper concentrate, now incorporates a copper scrap feeding facility. This addition aligns with the growing trend of utilizing secondary copper. In 2023, over 31% of China's refined copper output originated from copper scrap, according to the China Nonferrous Metals Industry Association. The rising cost of copper concentrate has driven many producers to favor copper scrap. This shift led to a 14% year-on-year increase in China's copper scrap imports, reaching 2.03 million tonnes from January to November.

Market Implications

This expansion by Chinalco reflects the broader industry trend of adapting to feedstock cost fluctuations and increasing reliance on recycled materials. The upgrade will strengthen Chinalco's copper production capabilities and contribute to the supply of copper cathode. The increased usage of copper scrap also highlights the growing importance of the circular economy within the metals industry.