Jiangxi Copper, the mainland's largest integrated copper producer, plans to invest about US$1.4 billion with a partner to develop metal mining projects in Peru, aiming to boost its self-sufficiency for copper concentrate to 50 per cent.
The mining projects will be developed by Northern Peru Copper Corp, a Canadian firm Jiangxi Copper and China Minmetals Corp bought earlier this year for C$455 million (HK$3.48 billion), according to chairman Li Yihuang.
Mr Li said the Galeno deposit in northern Peru, which is undergoing a feasibility study, is expected to produce 142,000 tonnes of copper concentrate annually over its 20-year life.
'The project could start production by 2012 at the latest and most of the output will be sold to Jiangxi Copper, which would greatly increase our ore supply,' Mr Li said.
The Galeno project, in which the Guixi, Jiangxi-based company has a 40 per cent stake, has total copper reserves of 3.3 million tonnes, gold reserves of 79 tonnes and molybdenum reserves of 86,000 tonnes. Minmetals holds the remaining 60 per cent.
Jiangxi Copper on Tuesday reported lower than expected 2007 earnings of 4.15 billion yuan (HK$4.59 billion), down 13 per cent from the year before. The company blamed lower processing fees, higher costs and its dependence on other firms for its copper concentrate for dragging down earnings.