By Yongchang Chin
Zijin Mining shares surged after the company announced Thursday evening that it would begin operations at its copper and gold mine in Serbia.
Shares rose 13% at the start of trading on Friday, but have since fallen and were last up 8.2% to HK $ 11.10.
The Hong Kong-listed mining company said its project in the upper area of ââthe Cukaru Peki copper and gold mine had received permits from the Serbian Ministry of Mines and Energy and would officially start production. .
The volume of resource reserves of the upper zone project, 100% owned by a Serbian subsidiary of Zijin Mining, is 1.28 million tonnes of copper and 81 tonnes of gold, he said. The project is designed to process 3.3 million tonnes of ore per year.
Zijin Mining said the project is expected to produce 50,000 tonnes of copper and three tonnes of gold in 2021.
The news comes in an increasingly tense copper market, according to Goldman Sachs. A significant shortage of the metal is expected in the fourth quarter and “global stocks of visible copper could reach all-time lows by the end of the year,” the investment bank said in a note.
He expects copper prices to hit his year-end target of $ 10,500 per tonne, he added. The three-month LME copper contract last rose 0.5% to $ 10,035 per tonne.
Write to Yongchang Chin at [email protected]