By Yongchang Chin
Zijin Mining Group Co.’s 2021 profit more than doubled, as sales and selling prices of mine-produced copper, refined copper and zinc all rose. The company expects it’s copper and gold resources to increase in 2022 as it expands projects and makes technological upgrades.
On copper:
“There is a release of new supply from copper mines,” but “a rise in resource nationalism again” will create some supply disturbances, Zijin said. The new-energy field could spur a rise in demand, “which will worsen the problem of lack of supply of copper mine projects in the medium to long term. A higher copper price is needed to solve the problem.”
On gold:
“The pace of global monetary easing has become slower. However, under the energy crisis and rise in labour costs, the inflation in Europe and the United States keeps increasing, and the economic recovery lacks momentum. Geopolitics raises risk aversion sentiment, providing support to the gold price to stay at the higher ranges.”
On zinc:
“The European energy crisis has become a core factor affecting the zinc market” in the medium-to-long term, Zijin said. “It still needs time for the energy price to drop. There is no need to be too pessimistic” in the medium term given China’s focus on maintaining steady growth. “The zinc market will maintain a tight balance situation.”
On lithium:
There is “erupting growth momentum in the demand for lithium electricity, and the actual demand is further magnified due to the need of reserving stocks along the industry chain. The long development period of lithium ore mine projects and salt lake projects makes the medium-term supply [unable] to cope with the rapid growth in demand.” It expects lithium prices to stay at a high range.
