The Second Largest Copper Mine in China Sets Sail

On December, 18, 2020, Yulong Copper Mine, the tallest mine in the world and the second largest monomeric copper mine in China, officially commenced its reconstruction and extension engineering production. It had been less than 2 years from April, 2019 when Yulong Copper Mine commenced its reconstruction and extension engineering to its normal production nowadays. This project boasts annual mining and dressing capacity of 18 million tons, and generates annual benefits of RMB 2 billion. It is estimated that once it reaches design capacity in 2022, its scale will become the second largest mine in production in China, only second to Dexing Copper Mine.

Yulong Copper Mine is located in Changdu of Tibet Autonomous Region, at the altitude of 4569-5118 meters. As a super-large porphyry and contact-metasomatic mixed copper deposit, there is a total resource reserve of 1.027 billion tons of ore within the scope of mining rights, of which copper is 6.58 million tons and molybdenum is 400 thousand tons. Copper reserves of Yulong Copper Mine rank the second in China, only second to Qulong Copper Mine, so Yulong Copper Mine has great prospect in deposit scale and economic value.There are two phases of engineering schemes for Yulong Copper Mine. Phase one was completed in 2016 and phase one has already achieved hydro-mining and dressing and floating mining and dressing capacity of 2300 thousand tons/year and copper capacity of about 30000 tons; phase-two reconstruction and extension engineering fully commenced in April of 2019. Once it reaches design capacity in 2022, it can achieve 100 thousand tons of increased copper per year, becoming the second largest mine in China, only second to Dexing Copper Mine.

At present, Western Mining owns its 56% equity and Zijin Mining owns its 21% equity. Yulong Copper Mine’s going into operation is of great significance to these two companies.After Yulong Copper Mine goes into operation, Western Mining will increase its beneficial output of mining copper from 80000 tons to 100000 tons in 2021-2022, and it will gradually transform its primary operation to copper. Western Mining will further manifest its industrial landscape of “Copper---the key element”, which means that after years of intensive efforts in non-ferrous industry, Western Mining is going to step into “harvest season”.

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Zhejiang458437920.09 Jiangxi61065845541.81 Hunan2564290657.81 Guangxi16531011725.89 Yunnan1033594639-0.32 Total output China2172720291011.79

Unit: metric ton

Name of provinceProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Shanxi7167103619-15.70 Henan255522479-14.08 Shaanxi6107957560511.45 Ningxia682054229-7.27 Xingjiang406841155-25.50 Total output China877538582820.52

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Tianjin3959367-3.74 Hebei3823585-19.73 Shanxi11351112650-18.43 Inner-Mongolia6833955476433.10 Liaoning104341004950.92 Jilin11614126048-3.57 Shanghai--- Jiangsu30269287178-0.07 Zhejiang46181497415-9.36 Anhui9460810583178.33 Fujian597126678262.89 Jiangxi15019715073793.71 Shandong10480911026924.91 Henan61873542470-4.11 Hubei45235512025-4.48 Hunan146751390282.19 Guangdong1597114339210.52 Guangxi9391496310539.14 Sichuan36841-54.67 Yunnan650826993094.93 Tibet4878586-1.56 Shaanxi6577837-63.61 Gansu6373366321614.25 Xinjiang11580100432-20.83 Total output China985530100250597.39

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Shanxi71767761654-3.47 Inner-Mongolia507478574209610.19 Liaoning70486689731-4.69 Fujian601970455-15.05 Shandong6745468079029-0.39 Henan15021217647944.36 Hubei6412731575.97 Guangxi2053812177658-0.80 Chongqing42739449035-8.92 Sichuan8403670466255.54 Guizhou11442913558226.09 Yunnan299542259207544.29 Shaanxi3711783507012.62 Gansu17702822552153.53 Qinghai21089923901277.36 Ningxia987981192326-4.83 Xinjiang5109955945095-2.05 Total output China3267903370804014.86

Unit: metric ton

Name of province Production inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Shanxi151460918123883-9.21 Inner-Mongolia2129838030220.46 Shandong2344293280077585.99 Henan67128710108662-6.53 Guangxi934681941062711.27 Chongqing14542213664038.67 Sichuan81591235845.60 Guizhou39064642767495.83 Yunnan998901305403-13.25 Total output China6133902731319460.30

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Liaoning--- Jiangxi306420457139.23 Henan40250-22.27 Hubei70664-16.90 Guangdong---- Guangxi370519234-5.99 Shaanxi---- Gansu130011501242.80 Xinjiang1090118196.65 Total output China2758326946611.32

Unit: metric ton

Name of metalProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Copper985530100250597.39 Aluminium3267903370804014 Lead71607564430719.41 Zinc60199964248762.72 Nickel2758326946611.32 Tin2172720291011.79 Antimony23351235363-1.89 Mercury2571993-2.60 Magnesium877538582820.52 Titanium1346513823039.05 Total China5745643616798515.51

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Beijing4734604-20.44 Tianjin29005309572-8.10 Hebei103949587022.63 Shanxi207622323-9.34 Inner-Mongolia815100545.55 Liaoning20768217727-18.01 Heilongjiang-5525-3.30 Shanghai26858254266-0.13 Jiangsu332482369829417.23 Zhejiang25315527421483.97 Anhui1968832363336-7.05 Fujian181231814514.14 Jiangxi43305384768612.23 Shandong649387839057.97 Henan7156867653918.09 Hubei456894172270.00 Hunan3665251664316.98 Guangdong14710526206259.04 Guangxi3162411363724.71 Chongqin179873093622.80 Sichuan205801825997.06 Guizhou4114134-20.09 Yunnan13863205933-14.87 Shaanxi37424066211.29 Gansu39422733044-13.53 Qinghai--29.62 Ningxia1755089.84 Xinjiang300296878-12.91 Total output China1920704204545528.62

Unit: metric ton

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Inner-Mongolia 3836835224517.32 Liaoning946585294-1.64 Jiangsu7154062397847.03 Anhui126924107407614.05 Jiangxi2401128488615.47 Henan14105414800804.82 Hubei22513204604-12.74 Hunan13863399694812.12 Guangdong435947725-19.53 Guangxi2619428095324.46 Chongqin1800386197-22.72 Guizhou24979217749-0.56 Yunnan38293415129-6.35 Shaanxi224032881-31.65 Gansu40073229517.42 Qinghai1098486737-1.05 Ningxia7311208-0.84 Total output China71607564430719.41

Unit: metric ton(metal content)

Name of province or cityProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Hebei36322-26.61 Shanxi50286325517.84 Inner-Mongolia7301103781-5.04 Liaoning6029117-1.25 Jilin78715295-13.47 Heilongjiang1900819947536.24 Jiangsu--- Zhejiang5756148-37.34 Anhui732181248-4.17 Fujian26306676919.81 Jiangxi28872331163-5.84 Shandong872752-21.60 Henan491670622.25 Hubei726767600-12.39 Hunan5807428-67.61 Guangdong1743180829.00 Guangxi1801543-38.16 Sichuan392347565-3.91 Guizhou--- Yunnan2402526054910.95 Tibet1050111099624.78 Shaanxi7912256419345 Gansu12527132426-0.09 Qinghai7951015678.09 Xinjiang8779108129-3.08 Total output China14384716733383.93

IndicatorUnitDecember 2020Jan.-Dec. 2020Change 2019-2020 Ore Grade Copper%0.640.670.71 Lead%2.192.612.60 Zinc%4.765.115.07 Nickel%1.061.071.12 Tin%0.710.660.68 Antimony%3.983.152.44 Tungsten%0.230.260.27 Molybdenum%0.110.100.10 Concentrate Grade Copper%21.4821.9222.08 Lead%61.4861.5361.36 Zinc%49.2150.1249.80 Nickel%7.616.826.82 Tin%43.8643.2842.95 Antimony%25.7826.0328.98 Tungsten%51.5150.30551.62 Molybdenum%51.7652.3552.26 Recovery Rate of Mineral Processing Copper%86.4686.3486.22 Lead%87.6086.9686.36 Zinc%90.4890.9891.28 Nickel%82.5883.9084.15 Tin%71.4568.9970.47 Antimony%88.5884.5084.89 Tungsten%79.6578.2877.94 Molybdenum%87.4286.1985.52 Copper Total Recovery Rate of Copper Smelting%98.6698.7298.55 Recovery Rate of Refined Copper%99.6599.6599.63 Recovery Rate of Blister%99.1399.0998.98 Direct Current Consumption of Refined CopperkWh/ton320.54322.15322.57 Current Consumption of BlisterkWh/ton711.27715.02741.28 Coal Consumption of Blisterkg/ton158.09151.89166.60 Aluminum Comprehensive AC Power Consumption of AluminumkWh/ton13584.6613543.3413530.97 Direct Current Consumption of AluminumkWh/ton12873.4612836.7912880.71

IndicatorUnitDecember 2020Jan.-Dec. 2020Jan.-Sep. 2017 Alumina Consumption of Aluminumkg/ton1915.771913.031912.70 Total Recovery Rate of Aluminakg/ton79.1280.0079.32 Soda consumption of Aluminakg/ton148.40142.04153.82 Lead Total Recovery Rate of Lead Smelting%97.1297.2297.09 Recovery Rate of Lead Bullion%98.0498.1197.94 Coal Consumption of Lead Bullionkg/ton281.30246.15281.60 Direct Current Consumption of Refined LeadkWh/ton119.71117.91119.05 Zinc Total Recovery Rate of Refined Zinc%96.1096.1196.08 Direct Current Consumption of Refined ZinckWh/ton3102.523056.693045.08 Tin Total Recovery Rate of Tin Smelting%98.1098.2398.16 Direct Current Consumption of Tin SmeltingkWh/ton1617.011951.782046.50 Coal Consumption of Tin Smeltingkg/ton1486.361429.151509.10 Nickel Total Recovery Rate of Nickel Smelting%93.8994.3694.31 Antimony Total Recovery Rate of Antimony Smelting%94.7896.9296.32 Direct Current Consumption of Antimony SmeltingkWh/ton841.70747.59627.61 Yield of Processed Material Rate of Total Copper Products%80.7280.9680.06 Copper Melting %95.7395.7395.85 Copper Processing Products%84.0684.2883.32 Rate of Total Aluminum Products%67.2466.9564.89 Aluminum Melting%89.2089.1088.26 Aluminum Processing Products%74.0374.3973.31

Unit: metric ton

Name of provinceProduction inDecember 2020Total outputJan.-Dec. 2020% Change2019-2020 Hebei319434965-2.09 Inner-Mongolia56688584625-5.24 Liaoning25551289277-0.05 Jiangsu1462141641.90 Zhejiang335028157-14.03 Anhui10709113254-1.49 Fujian1221382-46.22 Jiangxi125691451960.73 Henan35277354930-9.85 Hubei-3788-47.64 Hunan765878162424.56 Guangdong2271826481810.56 Guangxi5491366099830.87 Sichuan42700464681-5.43 Guizhou37212384318.51 Yunnan1214581294370-2.77 Shaanxi738957597236.00 Gansu3884740445213.33 Qinghai1368512286313.75 Ningxia14561447127.83 Total output China60199964248762.72