On the evening of March 18th,Zijin Mining(601899) released the 2021 annual report, the annual operating income was 225.102 billion yuan, a year-on-year increase of 31.25%; the net profit attributable to the parent was 15.673 billion yuan, a year-on-year increase of 140.80%; operating net cash flow achieved 26.1 billion yuan, a number of operating indicators hit an all-time high.
According to the annual report, thanks to the commissioning of three world-class copper mines including Kamoa-Kakula Copper Mine, Peggy Copper-Gold Mine and Julong Copper Mine,Zijin MiningKey indicators such as copper and gold resource reserves and mineral product output, as well as sales revenue and net profit attributable to the parent company are close to or among the top 10 in the world, and major overseas indicators surpass domestic ones.
World-class projects are successively completed and put into production
In 2021, due to the impact of the mineral energy crisis and the surge in demand for new energy, the mismatch between the supply and demand of non-ferrous metals in the world will intensify.
Against this background,Zijin MiningThe global demand for main minerals has increased significantly, and the prices have maintained an upward trend. Data show that in 2021, copper and zinc prices will hit record highs, with growth rates of 24% and 27%, of which copper prices will hit a ten-year high, exceeding $10,000/ton.
As early as early 2020,Zijin MiningChairman Chen Jinghe believes that due to economic uncertainty and geopolitical turmoil, gold is expected to start a medium and long-term bull market, copper supply and demand have entered an era of tight balance, and prices have the momentum to return to rising.
to this end,Zijin MiningIn 2020, it bought the Tibet Julong Copper Mine and Guyana Aurora Gold Mine once more. Chen Jinghe has requested on many occasions that it is the primary task to make every effort to transform resource advantages into economic benefits, and has identified 2020 as the company’s “project construction year” to accelerate the construction of a number of world-class mines.
at the same time,Zijin MiningIt took nearly a year to deduce the company’s development goals to 2030, and released a 5-10-year development goal plan in early 2021, which has attracted widespread attention in the market. According to the plan,Zijin MiningDivide the next 10 years into “2+3+5” three-stage goals, achieve comprehensive indicators to enter the top 3-5 global metal mining companies, and build a super-first-class mining company.
2021 is the start year of the first phase,Zijin MiningA number of major world-class flagship projects were successively completed and put into operation. Among them, the “three world-class” copper mines such as the Kamoa-Kakula Copper Mine in Congo (DRC), the Pegi Copper-Gold Mine in Serbia, and the Julong Copper Mine in Tibet exceeded the expected production volume, helping the company to become a global mine with copper production growth The fastest and most popular company in the global metal mining industry.
The announcement shows,Zijin MiningThe main mineral products achieved annual production of 584,000 tons of copper, 47.5 tons of gold, 434,000 tons of zinc, 309 tons of silver, and 4.25 million tons of iron concentrate, up 29%, 17%, 15%, and 3% year-on-year respectively. and 10%. Among them, the capacity of copper mines has grown significantly, and it has become the company with the fastest growth and the largest number of copper mines in the world. The gross profit margin of the company’s mineral products has increased significantly, reaching 58.98%, and the profitability is better than the overall average level of the industry.
Pursuit of green and high technology
As one of the powerful players in the global copper mining industry,Zijin MiningIt is believed that copper is an important new energy mineral, a “future metal” and a green mineral for the green transformation of energy in the “dual-carbon era”, and copper is the core of the company’s future growthdriving force. to this end,Zijin MiningRedefine the strategic goal as: green high-tech super-first-class international mining group, green and high-tech become the main goal pursued by the company.
at the same time,Zijin MiningRelying on the traditional advantages of the mining industry, we will advance into the blue ocean field of new energy and new materials, and include lithium in the selection of strategic metal minerals. The company first completed the acquisition of Argentina’s world-class high-grade 3Q lithium salt lake, and obtained regarding 7.63 million tons of lithium carbonate resources. The first phase is designed to produce 20,000 tons of battery-grade lithium carbonate per year, and it is planned to be completed and put into production by the end of 2023; A greenfield exploration project has been deployed outside the Manono Lithium Mine in Congo (DRC).
Chen Jinghe believes that,Zijin MiningIn the future development, we must not only pay attention to the development of green metals such as copper and lithium, but also pay attention to green electricity and decarbonization. We must actively respond to the Paris Agreement and the “carbon neutrality” action, and regard low carbon as a new aspect of the company’s construction and operation. Wind direction, we must pay close attention to the “dual carbon” policy to generate major revolutionary opportunities in the energy structure, connect with the direction of industrial development, and use high-quality mineral raw materials, new energy, and new materials to help the country’s industrial transformation and upgrading.
Also disclosed in this annual report are “Zijin MiningESG Report. The report shows,Zijin MiningIn 2021, the unit carbon emission will be 0.32 tons of carbon dioxide per 10,000 yuan of sales revenue, a year-on-year decrease of 9.5%; while promoting the construction of international green mines,Zijin MiningUsing the resources around the mine, actively promote the development of clean energy projects such as photovoltaics, wind power, and hydropower. In 2021, the amount of clean power generation converted into carbon dioxide emission reduction can reach 116,300 tons, which is equivalent to planting 63,442 trees.
In addition to the mining business, the company has also deployed new material projects such as lithium iron phosphate, electrolytic copper foil, and high-performance alloys, and launched the ammonia-hydrogen energy industry in cooperation with Fuzhou University to help the “ultimate energy” hydrogen energy industrialization.
Mature multinational operation model
Zijin MiningSaid that the company’s multinational operation model is more mature and efficient, and it has become a global enterprise in the metal mining industry. In order to be in line with international standards,Zijin MiningAccording to the latest standards, the company’s resource reserves have been comprehensively revised to enhance the credibility of the resource reserves.
According to disclosure,Zijin MiningCopper resources reached 62.77 million tons, of which 20.33 million tons were reserves, equivalent to 75% of China’s total reserves; gold resources reached 2,373 tons, of which 792 tons were reserves, equivalent to 41% of China’s total reserves. It is worth mentioning that more than half of the company’s resource reserves are obtained through independent exploration.
The annual report shows,Zijin MiningThe reserves, production and profit contribution of overseas gold and copper mineral resources surpassed domestic ones in an all-round way. Among them, overseas resources accounted for 76% of copper, gold accounted for 74%, overseas production copper accounted for 53%, gold accounted for 60%, and overseas profit contribution reached 51%.
For future development plans,Zijin Miningsaid that 2022 isZijin MiningWhen the first stage of the ten-year strategic development plan (2021-2022) is achieved, the new growth group will continue to stabilize and expand production. The company plans to mine 860,000 tons of copper and 60 tons of gold.
On the basis of achieving the planned goals in 2022, the company will increase its power to promote Heilongjiang Tongshan Copper Mine, Fujian Zijinshan Luobuling Copper (Molybdenum) Mine, Serbia Bor Copper Mine JM Copper Mine, Serbia Chukalu-Pegi 4 underground large-scale porphyry deposits, including the Lower Zone of the Copper-gold Mine, are implemented with the caving method, striving to achieve an annual copper metal production capacity of more than 200,000 tons; at the same time, accelerating the realization of an annual copper metal production capacity of 200,000 tons in the second phase of the Julong Copper Mine in Tibet , as well as the second phase of the Kamoa Copper Mine in Congo (DRC) and some of the third phase of the project to achieve an additional annual production capacity of 120,000 tons of equity copper metal, and strive to break through the announced copper production plan in 2025.
