Jiangxi Copper plans $3.6 billion bond sales to fund expansion

Jiangxi Copper Co., a leading Chinese smelter, said it planned to issue up to 25 billion yuan ($3.6 billion) of bonds that could fund an expansion of mining after prices rallied to a record.

The company will issue up to 15 billion yuan of medium-term notes, as well as 10 billion yuan in super short-term commercial paper, it said in an exchange filing. Proceeds will be used to repay debt, supplement working capital, or fund merger-and-acquisition activity, it said.

Copper hit a record above $13,000 a ton this month, supported by optimism about the outlook for demand amid the energy transition and data-center build-out. Supply snarls at mines, and concerns that the US may impose a tariff on imports have also boosted the metal.

Globally, companies are hunting for copper reserves, or seeking to combine with rivals to expand their access to the commodity. Last month, Jiangxi Copper agreed to buy Australian copper miner SolGold Plc for about $1 billion, with the smelter seeking to boost ore self-sufficiency after record low processing fees crimped margins.

This week, major Chinese miner CMOC Group Co. raised $1.2 billion from the sale of convertible bonds to expand its overseas mining and processing assets, as well as to improve working capital.

Jiangxi Copper shares in Hong Kong hit a record earlier this month.

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