Zijin Mining reports record annual profit for second-year in a row

Workers at Zijin facility (Credit: Metso)

Zijin Mining Group Co Ltd, one of China’s largest gold and copper producers, reported on Friday that 2021 net profit surged by more than 140% to a record high and said it would expand production this year.

“Shocked by the energy crisis, rising nationalism in the crisis and soaring demand from the new energy sector… main mineral prices in the non-ferrous industry are rising,” it said, adding that despite a dip in gold prices, copper and zinc prices had jumped 24% and 27% respectively last year.

Zijin’s net income stood at 15.7 billion yuan ($2.47 billion) last year, a record high for the second straight year, according to the filing.

The miner’s revenue jumped 31.25% on an annual basis to 225.1 billion yuan, the company said, thanks to increasing prices of nonferrous metals.

Zijin’s mined copper production rose 28.8% in 2021 to 584,165 tonnes, while its smelted copper output climbed 7.9% to 621,334 tonnes, it said. Its mined gold output increased 17% to 47.5 tonne.

For 2022, the company expects to lift its mined copper output to 860,000 tonnes and mined gold production to 60 tonnes, according to the filing.

It also aims to raise mined zinc production from 434,000 tonnes in 2021 to 480,000 tonnes this year.

The miner will develop more mineral resources used as new energy materials such as lithium, cobalt and nickel, and plans to realise an annual capacity of lithium carbonate equivalent (LCE) at 50,000 tonnes.

Zijin had announced last month that it would invest $380 million to construct a lithium carbonate plant in Argentina, which is expected to start production in 2023.

Zijin’s A-share price ended up 3.2% at 10.63 yuan per tonne on Friday, and its H-share inched 0.5% higher to HK$11.2 ($1.43).

($1 = 6.3614 Chinese yuan renminbi)

($1 = 7.8216 Hong Kong dollars)

(By Min Zhang and Meg Shen; Editing by Susan Fenton)

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