Jianxi Copper To Increase Lead and Zinc Production

Jianxi Copper In Talks To Buy Shandong Copper Smelter

China’s largest copper producer, Jiangxi Copper is to add 100,000 tonnes each of lead and zinc capacity next year, the company’s chairman said.

Speaking to reporters in Hong Kong, Mr Li Yihuang said that this was the first phase in a project that will take lead and zinc capacity to 400,000 tonnes.

However, Mr Li warned that demand growth for the company’s copper is expected to fall as the Chinese government reduces its stimulus spending on the country’s power industry. He also expects price to fall in the second half of this year as governments worldwide also cut back their stimulus spending.Yesterday, the company announceda fourth-quarter net income of 623 million yuan ($91 million), compared with a loss of 1.4 billion yuan a year ago.

Mr Li also announced that the company is still in talks with the local government of Shandong to buy the Yantai Penghui Copper Industry Co., a copper smelter.
Capital expenditure for this year will increase by 13 percent to 3.4 billion yuan this year, from 3 billion yuan in 2009. President assistant Tang Delong, said that the company aims to increase its copper mine output to 240,000 metric tons in 2011, up from 172,000 tons this year.

Jiangxi Copper has a requirement of 464,000 tons of copper ore a year, with its own production accounts for about 35 percent of its needs.