The expansion project in Tibet will significantly increase copper and molybdenum capacity from 2025.

Chinese mining company, Zijin Mining, has received approval to commence phase two expansion of its Julong Copper mine in Tibet, China. The planned expansion was approved by the Tibet Autonomous Development and Reform Commission. The expansion forms part of a three-phase expansion plan for the mine.

Zijin’s Julong mine is a large porphyry copper-molybdenum deposit located in Mozhugongka County, Lhasa, Tibet Autonomous Region in China. Phase one of the Julong mine currently has the capacity to process 200ktpd of ore. Upon completion of phase two, processing capacity will increase from 150ktpd to 350ktpd. This will see annual ore mining and processing volume of the Julong copper mine surpass 100Mtpy, making it one of the largest copper mines in China in terms of mining and processing capacity. The expansion will be carried out by Tibet Julong Copper, a subsidiary of Zijin Mining, and will cost approximately RMB17.5Bn (US$2.43Bn). Construction of phase two is anticipated to be completed in 2025, with production expected to commence by the end of the year with a life-of-mine (LOM) of 36 years. Plans for phase three of the Julong expansion are underway but has not yet been approved.

Developing copper assets in China will help secure future copper supplies needed for the energy transition. It will also reduce China’s dependence on South American copper imports. For future molybdenum supply, developing projects and expanding mines will be key to offsetting declining ore grades at aging mines. This is a challenge currently faced by Chilean producers who are feeling the effects of declining ore grades.

Project Blue data for 2023 shows that Chinese molybdenum production was dominated by primary mines, which produced around 90kt of molybdenite-in-concentrate (~75% of production). The balance of approximately 30kt of molybdenite-in-concentrate (~25% of production) came as a by-product from copper and tungsten mines. Phase two expansion of the Julong mine will effectively double molybdenum production capacity from 6.2ktpy Mo to 13ktpy Mo, adding more molybdenum production capacity to China’s current production level. As a result, China’s molybdenum feedstock looks to be well secured for the next 10-15 years. That will be welcome news for the Chinese steel and stainless steel industries, which are the largest consumers of molybdenum.