Serbia's Zijin Mining, a wholly-owned subsidiary of Chinese-backed Zijin Mining, has received permission from the Serbian government to carry out mining activities at the Cukaru Peki copper-gold mine, part of the Timok project in the east of the country.
Serbia will become Europe's second largest copper producer once the mine is operational, the country's mining ministry reportedly said.
Cukaru Peki was originally scheduled to begin production in the summer of 2021 with an initial average copper production of 91,000 tons/year and an annual gold production of about 200,000 ounces. The mine is now expected to start production in the fourth quarter of this year, gradually ramping up production until it reaches a peak of 135,000 tonnes of copper a year.
The government expects the country's booming mining sector to start accounting for 4-5 per cent of GDP in less than a decade, a significant increase from the current 2 per cent. Zijin's local subsidiary now operates the country's only copper mine, RTB Bor. The company had to suspend work at the mine in April for alleged violations of the country's environmental standards.
The unit has been ordered to prioritize the completion of a sewage treatment plant at the mine to avoid polluting the Pek River, a tributary of the Danube. Serbia Zigold and Copper has committed to invest $408m this year, up from $360m in 2020, to overhaul and expand its four mines and one smelter.
The plan also includes improving environmental protection in the heavily polluted Bor region of eastern Serbia. China has spent billions of euros in Serbia, mainly in the form of soft loans to finance road and energy projects. These investments are part of the "One Belt And One Road" initiative, which aims to open up new foreign trade links for local companies.
ABOUT PUDA,
PUDA, a 28 year’s leading international manufacturer of bag packing machines, has closed business relationship with Zijin Group. PUDA has provided many ton bag packing systems for mineral concentrate to Zinjin.
