As the world’s largest copper-consuming market, China accounts for roughly 50% of global copper resources. Lacking pricing power in the market means being “passively exploited.” As a critical strategic resource for the nation, China finds itself constantly having to watch others’ reactions—a situation that seriously jeopardizes the country’s resource security.

　　In recent years, Chinese enterprises have been steadily expanding their presence in the global copper raw materials market. Two Chinese copper mining companies—Zijin and Chinalco—have joined the ranks of the world’s top-tier copper mines, and China Minmetals’ copper production has also risen into the global top ten, offering a glimpse of hope for China’s copper enterprises.

　　I. Low reserves, high consumption—China lacks pricing power over copper.

　　1 Distribution of Copper Mineral Resources

　　According to data from the U.S. Geological Survey in 2015, global copper reserves total approximately 700 million tons. Among these, Chile, Australia, and Peru are the three countries with the largest copper reserves, collectively accounting for 53% of the world’s total reserves.

　　The United States, Mexico, China, and Russia belong to the second tier in terms of copper reserves, accounting for between 4% and 6% of the global total. China’s copper reserves amount to approximately 30 million tons, representing about 4% of the world’s total resources and ranking it sixth globally.

　　2 Copper mine production

　　According to a report released by the World Bureau of Metal Statistics (WBMS), global mine-produced copper output in 2016 reached 20.66 million tons. Among this, Chile’s copper production stood at 5.57 million tons, a decrease of about 5% year-on-year, yet it remained the world’s largest copper supplier. In 2016, thanks to the commissioning of large-scale mines such as Las Bambas, Peru’s copper production increased by 37% year-on-year to 2.35 million tons, surpassing China and the United States to become the world’s second-largest copper producer.

　　In 2016, China's copper production reached 1.4 million tons, ranking fourth globally and accounting for 6.78% of the world's total copper production.

　　3 Copper Consumption and Dependence on Foreign Sources

　　In 2016, global copper consumption totaled 23.4 million tons. Of this amount, China’s copper consumption was approximately 10.3 million tons, accounting for 44% of the global total.

　　Low reserves, low production, and high consumption suggest that China must rely on imports. In 2016, China imported 3.609 million tons of copper concentrate, bringing its external dependence to 72.06%.

　　Faced with the oligopolistic dominance in the global copper raw materials industry, China—being the world’s largest consumer market for copper—finds itself constantly having to watch what others do. The best way to break this monopoly is to gain a foothold in the global copper raw materials market. In recent years, several Chinese companies and their mines have been expanding their presence in the global copper raw materials market, thereby enhancing China’s influence and voice in the global copper market!

　　II. Two Chinese Mines Make the Global List of Super-Copper Mines

　　Currently, there are only 26 world-class supercopper mines (with copper metal resources and reserves exceeding 20 million tons), accounting for approximately 1.53% of the global total number of projects, yet their reserves make up 38.35% of the world’s total reserves.

　　Among the world’s 26 super-large copper mines, Chile boasts 9, making it the country with the largest number of such mines. The four largest copper mines in the world are all located in Chile. The world’s largest copper mine is the Andina Division copper mine in Chile, with reserves reaching 118.9 million tons and currently owned by the Chilean National Copper Corporation.

　　From a national perspective, Australian companies such as BHP and Rio Tinto have invested in eight super-large copper mines. Chile ranks second, with its companies investing in seven super-large copper mines. China’s neighbor Japan has also directly invested in six super-large copper mines.

　　China has two mines that have made it onto the global list of super-copper mines: Zijin’s Kamoa copper mine and Chinalco’s Duolong mining area in Tibet. Although there is still a gap compared to countries like Chile, Australia, and Japan, both Chinese mines were only recently acquired and boast enormous potential.

　　1. Kamoa Copper Mine

　　In October 2016, Zijin Mining made a new discovery of 94 million tons of copper resources in the Kakula ore body of the Kamoa Copper Mine project in the Democratic Republic of the Congo. This discovery brings the mine’s total copper reserves to 33.4 million tons—equivalent to one-third of China’s current copper reserves—making it the largest copper mine ever discovered on the African continent.

　　Recently, the Kamoa Copper Mine has achieved another major breakthrough in its exploration efforts within the Kakula West exploration area. According to relevant officials, half of the Kamoa-Kakula project—covering a total area of 400 square kilometers—remains unverified. Once this verification is completed, the Kamoa Copper Mine could soon rank among the world’s top three copper mines.

　　2. Duolong Mining Area in Tibet

　　On November 16, 2016, at a press conference held by the Ministry of Land and Resources, it was announced: “The Duolong mining area in Tibet has discovered copper reserves totaling 11 million tons, making it China’s first copper deposit with reserves reaching the ten-million-ton level.”

　　Currently, Chinalco has discovered copper reserves totaling 13.492 million tons in the Duolong mining district. Additionally, Sichuan Hongda Company has also identified copper reserves exceeding 7 million tons in the Duobuzha and Bolong areas of the Duolong mining district. As a result, the total copper reserves in the entire Duolong mining cluster have surpassed 20 million tons, making it the 26th member of the world’s premier super-copper mining district (field) club. As exploration efforts continue, the Duolong mining district’s global ranking is expected to keep rising.

　　III. The World’s Top Ten Copper-Producing Companies

　　Owning copper mines is capital; the real path to corporate development lies in converting that capital into effective production and achieving profitability!

　　In 2016, the top ten global copper mining companies produced a total of nearly 9.5 million tons of primary copper, accounting for 45% of global production. Among them, Chile's Codelco, Freeport-McMoRan, and Glencore together accounted for 24% of global total production, firmly occupying the top three positions.

　　1. Chilean state-owned (Codelco)

　　Also known as the Corporación Nacional del Cobre de Chile (CODELCO), it is a renowned Chilean company established on April 1, 1976. It is the world's largest copper producer, engaged in the development, mining, refining, processing, and sale of copper ores. Its total assets amount to 8.083 billion U.S. dollars, and its sales in 2005 reached 10.491 billion U.S. dollars. The chairman of the board is Karen Poniachik Pollak, Chile's Minister of Mining, and the CEO is José Pablo Arellano.

　　In the first quarter, Chile's state-owned Codelco saw its copper production decline by 11% year-on-year, due to declining ore grades at aging mines. However, the initial recovery in copper prices boosted the company's profits. The company’s wholly-owned mines produced 390,000 tons of copper, while its total copper production—including mines in which it holds stakes—amounted to 416,000 tons.

　　2. Freeport-McMoRan

　　Freeport-McMoRan Inc. (NYSE: FCX), also known as Freeport-McMoRan Copper & Gold Inc., Freeport-McMoRan Copper and Gold Company, or Philip McMoRan Copper & Gold Company, was founded in 1987. Its predecessor was Freeport-McMoRan Copper & Gold Inc. The company changed to its current name in July 2014. Headquartered in Phoenix, Arizona, USA, it has 30,000 full-time employees. Freeport-McMoRan is a company engaged in the acquisition and mining of mineral assets, primarily extracting copper, gold, molybdenum, cobalt, silver, and other metals. It is currently the world’s largest producer of copper and molybdenum mines and one of the world’s largest gold mining companies.

　　In the first quarter of 2017, Freeport’s copper production totaled 386,000 tons, a year-on-year decrease of 22%. Excluding the impact from the sale of the Tenke copper mine (which was acquired by Luoyang Molybdenum and whose production now falls under Luoyang Molybdenum’s ownership), the year-on-year decline was 11%. The primary reduction in output was seen at the Grasberg copper mine in Indonesia, while the Cerro Verde copper mine in Peru, also part of the company’s portfolio, experienced a moderate decline in production as well.

　　3. Glencore

　　In the world of physical commodity trading, Glencore—the largest privately held partnership in the world—has an omnipresent presence. With revenues surpassing those of Nestlé, Novartis, and UBS, the company’s business network spans 40 countries and employs over 2,000 traders, lawyers, accountants, and other professionals who receive real-time market and political intelligence on everything from Central Asian oil to South Asian sugar. Its young, high-performing employees consistently dominate their respective markets. Senior executives at the company enjoy close personal relationships with Russian oligarchs and African mining tycoons.

　　In the first quarter of this year, Glencore’s copper production fell by 3% year-on-year to 324,100 tons. The first-quarter output was affected by several weather-related factors, including Cyclone Debbie in Australia, floods in Peru, and above-normal rainfall in the Democratic Republic of the Congo. Meanwhile, ore grades at some mines have declined. Glencore may adjust its equity stakes in several copper mines this year.

　　4. BHP Billiton

　　BHP is a world-renowned multinational corporation headquartered in Melbourne, Australia, and is one of the world’s leading mining companies.

　　BHP Billiton Ltd. (formerly Broken Hill Proprietary Billiton Ltd.): A renowned multinational corporation primarily engaged in the oil and mineral industries. BHP was founded in Melbourne in 1885, while Billiton was established in 1860. The two companies merged in June 2001. In the fiscal year 2003-2004, the company’s total revenue reached AUD 34.087 billion, with a total market capitalization of AUD 136.35 billion. It employed 35,000 people and became the world’s largest mining group. The company is listed on stock exchanges in Australia, London, and New York.

　　In the first quarter of 2017, BHP’s copper production totaled 227,000 tons, a year-on-year decrease of 43.9%, primarily due to the 44-day strike by workers at its Escondida copper mine in Chile. Following the strike, BHP lowered its annual copper production target for the Escondida mine from 1.07 million tons to between 780,000 and 800,000 tons. At the same time, BHP revised downward its 2017 copper production forecast, reducing it from 1.62 million tons to between 1.33 million and 1.36 million tons.

　　5. Grupo México (Mexico Copper Group)

　　Grupo Mexicano de Minería (GMexico) is one of the most important companies in Mexico, Peru, and the United States, and also one of the world’s leading copper producers. The company additionally operates the largest multimodal rail transportation service in Mexico and has established a significant infrastructure development division, offering promising prospects for business growth.

　　The company was listed on the Mexican Stock Exchange in 1978 and is currently one of the highest-traded stocks. In the first quarter of 2017, Mexico Group’s copper production fell by 6% to 247,000 tons, primarily due to the closure of the Hayden smelter operated by Asarco, which led to an 18% decline in its copper output.

　　6. Anglo American

　　Anglo American plc and its subsidiaries and joint ventures are renowned global companies in the mining and natural resources sector. The company wields significant influence across a wide range of sectors, including gold, platinum, diamonds, coal, base metals, heavy metals, industrial minerals, as well as paper and packaging. It also boasts strong financial and technological capabilities.

　　The group has branches around the world and operates and develops businesses in Africa, Europe, South America, North America, and Oceania. Anglo American Resources Group presents to the world a powerful resource landscape.

　　In the first quarter, Anglo American’s copper production fell by 3% to 142,600 tonnes. While the Collahuasi copper mine continued to see rising output, this was offset by lower-than-expected ore grades at the Los Bronces copper mine. Additionally, the temporary suspension of mining operations at the El Soldado copper mine resulted in a production reduction of approximately 3,000 tonnes.

　　7. Southern Copper

　　In the first quarter of 2017, Southern Copper achieved a production volume of 222,000 tons, representing a slight year-on-year decrease of 3.5%. Southern Copper is also a company worth closely watching in the coming years, as it is poised to significantly increase its copper concentrate output alongside First Quantum. The expansion project at its Toquepala copper mine will begin production in the second quarter of 2018, adding an incremental 100,000 tons per year. Southern Copper is committed to reaching a total production capacity of 1.2 million tons per year by 2021.

　　8. Rio Tinto

　　Rio Tinto Group, known in Spanish as “Rio Tinto.” Founded in Spain in 1873, the group’s global headquarters are located in the United Kingdom, while its Australian headquarters are in Melbourne.

　　In 1954, Rio Tinto Group sold most of its Spanish operations. From 1962 to 1997, it acquired several influential mining companies worldwide. In 2000, it acquired Australia's Northern Mining Company, becoming a global leader in the exploration, extraction, and processing of mineral resources and earning recognition as one of the "Big Three" in the iron ore industry.

　　In the first quarter of 2017, Rio Tinto’s copper production fell by 37% year-on-year to 84,200 tons. Rio Tinto Group holds a 30% stake in Chile’s Escondida copper mine. In February, workers carried out a six-week-long strike. According to company documents, Rio Tinto has lowered its full-year copper production forecast to between 500,000 and 550,000 tons, down from its previous target range of 525,000 to 665,000 tons. The Escondida copper mine is expected to return to normal production levels by July of this year.

　　9. Antofagasta (Antofagasta PLC)

　　Chilean copper mining giant

　　In the first quarter of 2017, Antofagasta’s copper production reached 171,900 tons, an increase of 9.4% compared to the same period last year, but a decrease of 16.4% from the previous quarter due to lower ore grades. Antofagasta maintained its 2017 production target at between 685,000 and 720,000 tons.

　　10. First Quantum

　　First Quantum Minerals Ltd. is a financially stable and rapidly growing metals and mining company that primarily produces copper, nickel, zinc, gold, and platinum group elements. With high-quality operations, a geographically diversified portfolio of development projects, and a strategic plan to achieve an annual copper production capacity of 1.3 million tons within five years, First Quantum Minerals is poised to become Canada’s largest pure copper producer and one of the world’s top five copper producers.

　　First Quantum’s copper production for the first quarter of 2017 was 132,400 tons, representing an 11% year-on-year increase. The company’s planned production for 2017 is 5.7 million tons, with an annual growth rate of 5.6%.

　　IV. China Gives Birth to a Global Copper Industry Oligarch

　　In 2017, China imported 17.35 million tons of copper ore, a year-on-year increase of 2.31%, reaching a new historical high. As a country heavily reliant on copper imports, it is particularly important for China to gain greater influence in the global copper market. With the release of production reports from major mining companies worldwide in 2017, the ranking of copper ore production has gradually been established. Encouragingly, Chinese mining enterprises have made their presence felt among the industry’s leading oligopolies that wield significant influence over the global copper market.

　　Global copper mine production in 2017 was projected to reach 20 million tons. Among the world’s top 12 copper mining companies, the combined output exceeded 11 million tons, accounting for more than 55% of global production. It is highly significant that Chinese mining enterprises have entered the global top 12.

　　In 2017, four companies—Chile's Codelco (1.82 million tons, estimated), U.S.-based Freeport-McMoRan (1.7 million tons), BHP (1.45 million tons), and Glencore (1.26 million tons)—firmly occupied the top four positions among global copper producers, each with output exceeding 1 million tons.

　　In 2017, the threshold for entering the global top twelve copper-producing countries was 441,000 tons, a decrease of 10,000 tons from the 453,000 tons recorded in 2016. The primary reason for this decline was the reduced production capacity of established industry giants; among the 12 leading companies, eight saw their copper output fall. For instance, due to a strike at Escondida—the world’s largest copper mine—in the first quarter, BHP (which holds a 57.5% stake) saw its annual copper production drop by 80,000 tons, while Rio Tinto (with a 30% stake) experienced a decline of 40,000 tons. Additionally, affected by factors such as insufficient production capacity at mines in the Democratic Republic of the Congo, Glencore’s copper production in the first three quarters of 2017 fell by 60,000 tons year-on-year.

　　Among the top 12 companies, China Minmetals Resources has seen the fastest rise in ranking. Driven by the first-year full-capacity production at its flagship project, the Las Bambas copper mine in Peru, its copper output has approached 600,000 tons, enabling it to surpass Rio Tinto, First Quantum, and Anglo American and leap to eighth place.

　　V. China’s Most Successful Overseas Mining Investment to Date

　　WuKuang’s “rapid advancement” is evident to all, and among its many achievements, the Las Bambas copper mine in Peru, operated by WuKuang, has played a pivotal role.

　　In July 2014, a consortium led by Minmetals Resources, a subsidiary of China Minmetals Corporation, took over the massive Las Bambas copper mine in Peru for US$7.005 billion—a deal that marked the largest-ever transaction in the history of Chinese mining companies’ overseas expansion.

　　In 2015, China Minmetals’ copper production stood at only 217,000 tons. By 2016, China Minmetals had increased its copper output to 500,000 tons, marking its first entry into the global top ten. Among them, China Minmetals’ Las Bambas mine went into operation in January 2016 and achieved commercial production on July 1, with an annual copper output of nearly 330,000 tons for the year. In 2017, China Minmetals’ copper production reached 598,000 tons, representing a growth of 175.58%. Notably, the Las Bambas mine completed its first full-year production at full capacity, yielding 454,000 tons of copper, accounting for 75.92% of China Minmetals’ total copper output.

　　In 2017, Las Bambas is expected to produce copper concentrate containing between 420,000 and 460,000 tons of copper. In 2017, Minmetals Resources plans to increase its copper production to between 560,000 and 615,000 tons. According to He Wenbo, Chairman of the China Minmetals Corporation, Minmetals aims to boost its copper output to over 1 million tons within five years. Leveraging internal integration and overseas mining investments, Minmetals is strategically positioning itself globally and moving toward becoming a global copper industry giant!

　　In July 2016, the Las Bambas copper mine began commercial production. That same year, Las Bambas produced 330,000 tons of copper, accounting for 65.60% of Minmetals Resources’ total annual copper output and helping Minmetals enter the global top 12 copper producers for the first time, ranking 11th.

　　According to the plan, MMG will increase its copper production to over 1 million tons within five years, either by expanding its existing mines or through overseas acquisitions. At that time, MMG will become the world’s fifth-largest copper producer with an output exceeding 1 million tons.

　　Besides Minmetals, Zijin Mining could also bring another surprise to China, as many people believe that Zijin Mining’s world-class mine—Kakula-Kamoa Copper Mine—is superior to Minmetals’ Bumban Copper Mine.

　　In 2016, Zijin Mining produced 160,000 tons of copper, ranking it 14th among global copper companies—behind China's Minmetals Resources (500,000 tons) and Jiangxi Copper (210,000 tons). It is China's third-largest copper producer.

　　The copper business segment of Zijin Mining has also entered a period of rapid growth. On the domestic front, the production scale of the Zijinshan Copper Mine will continue to expand, eventually reaching an annual capacity of 80,000 to 90,000 tons (compared to a 2016 output of 56,000 tons). The second-phase expansion of the Duobaoshan project is expected to begin operations in the second half of 2018, adding an incremental output of 60,000 to 70,000 tons. Overseas, with its ownership of the Kamoa super-copper mine, Zijin’s copper production will experience rapid growth once the mine starts operating.

　　In 2017, the preliminary economic assessment results for the Kamoa-Kakula copper deposit were released. The Kakula ore section boasts an average copper grade of as high as 6.4% over the first 10 years. Generally speaking, copper deposits with grades ranging from 3% to 5% are considered high-quality. Clearly, Zijin Mining has struck gold.

　　According to the plan, the Kamoa copper mine will be completed in 2019 with an annual production capacity of 400,000 tons, and its capacity will be expanded to 800,000 tons by 2023. Once the project is fully operational, Zijin Mining will follow in the footsteps of China Minmetals and join the ranks of the world’s top ten copper mining companies.

　　Six: Why China Must Seize Control of the Copper Market’s Discourse Power

　　Whether it’s the Las Bambas copper mine owned by China Minmetals or the Kamoa-Kakula copper mine owned by Zijin Mining, both hold extraordinary significance for China.

　　As the world’s largest copper-consuming market, China accounts for roughly 50% of global copper resources. Lacking pricing power in the market means being “passively exploited.” As a critical strategic resource for the nation, China is constantly having to look over its shoulder at others, seriously jeopardizing national resource security.

　　Currently, there are only 18 copper mines in China with a concentrate production capacity exceeding 10,000 tons, and their reserves account for approximately 40% of the country's total output—truly serving as the backbone of the domestic copper industry market!

　　Currently, these large-scale mines—each with capacities of tens of thousands of tons—are facing challenges such as dwindling resource reserves and increasing mining depths as their years of operation extend. Coupled with growing environmental responsibilities and rising costs, major copper mines are continuously striving to offset declining resources by expanding extraction efforts into deeper underground areas, thereby ensuring the long-term viability of their operations.

　　Some open-pit mines, such as Duobaoshan Copper Mine and Lala Copper Mine, will shift from open-pit mining to underground mining as ore veins change. Underground mines will continue to deepen their operations; for instance, the mining depth at Dahongshan and Dongguashan has already reached over -1,000 meters.

　　In the context of reducing costs and boosting efficiency, exploring and discovering new mineral deposits, improving technical indicators, and ensuring that both output and profitability meet targets at domestic mines, the efforts of overseas mines become particularly valuable.