🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Chinese copper companies say more mining is needed to boost supply

Published 11/09/2022, 05:12 AM
Updated 11/09/2022, 05:16 AM
© Reuters. FILE PHOTO: Trucks are seen at a copper mine of Jiangxi Copper in Dexing, Jiangxi province, China December 16, 2015. Picture taken December 16, 2015. REUTERS/Stringer/File Photo
HG
-

BEIJING (Reuters) - China's top copper producers are urging the government to mine more of the metal, at home and abroad, as concerns grow about disruptions to global supplies, the state-backed China Nonferrous Metals News reported on Wednesday.

Jiangxi Copper Co Ltd, Zijin Mining, Tongling Nonferrous Metals Group Co Ltd and others urged relevant authorities in a meeting on Tuesday to launch a new round of ore prospecting as soon as possible and open a new batch of mines for development, the newspaper reported.

The lobbying by the industry comes amid rising concern about the global supply of copper, which is used in transport and construction, and increasingly in the fast-growing renewable energy and electric vehicle sectors.

In Peru, the Las Bambas copper mine, owned by Chinese miner MMG Ltd, said it has started to reduce operations due to recent blockades by indigenous communities, who have disrupted activity on and off for months.

Chile's Codelco, the world's largest copper miner, said this week it would extend maintenance work at its Chuquicamata smelter to 135 days, from an initially planned 90-day stoppage.

China is the world's top user of copper and relies on imports for about 25% of its consumption.

Mining companies should mine deeper and broader and work on extending the life of their mines, while smelting companies should speed up overseas resource development and optimize their layout over the industry chain, the Chinese companies are reported to have said at the meeting.

Chinese miners are, however, facing growing headwinds abroad, as countries compete to secure critical resources.

© Reuters. FILE PHOTO: Trucks are seen at a copper mine of Jiangxi Copper in Dexing, Jiangxi province, China December 16, 2015. Picture taken December 16, 2015. REUTERS/Stringer/File Photo

Last week, Canada ordered three Chinese companies to give up their investments in Canadian minerals, citing national security.

China produced 10.49 million tonnes of refined copper last year and imported 23.40 million tonnes of copper ore and concentrate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.