China's Largest Copper Mine to Begin Operation Next Month

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Yulong Copper Mine, which contains the largest copper reserves in China, is expected to begin operation next month in Tibet's Changdu region and produce 2,000 tons of electrolytic copper this year. The mine has 6.5 million tons of proven reserves and 10 million tons of forecast reserves.

The Western Mining Group Company Limited (Xining City, Qinghai province) has set up Tibet Yulong Copper Industry Company Limited to manage the mine's construction, which started in May 2006. Phase I cost $260.9 million ($1 = 6.9 RMB). So far, a 10,000-ton electrolytic copper workshop has been completed, along with associated power transmission lines and the installation of electronic equipment.

After Phase I construction is finished in 2010, the mine is expected to produce 30,000 tons of copper annually. Phase II could boost production by an additional 100,000 tons per year, but further details have not been released.

China has had a shortage in copper for the past few years. Data show that China imported 460,000 tons of copper concentrate in July, 24.5% higher than last July. In the first seven months of this year, imports totaled 3.14 million tons, up 19.1% year over year.

Western Mining is a major mining firm in western China and the only large-scale metal mining, dressing and smelting corporation on the Qinghai-Tibetan Plateau.

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