Latest news for Jinchuan Gr Intl (OTC:JGRRF) Stock

Jinchuan Group International Resources Co Ltd, through its subsidiaries, is engaged in mining operations including the production of copper and cobalt. The group's mining operations include two operating mines (Ruashi Mine and Kinsenda Mine), one project at the development stage (Musonoi Project), one exploration project (Lubembe Project), and one mine leased out under a finance lease agreement (Chibuluma South Mine (including Chifupu Deposit)). Geographically, it derives a majority of its revenue from Hong Kong.

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Rio Tinto, Manara, Mitsui &amp; Co. and Sumitomo Corp. are rumored to be circling First Quantum-owned assets currently for sale.

Rio Tinto, Saudi Arabia&#39;s Manara Emerge As Likely Bidders For First Quantum&#39;s Zambian Assets: Report

Copper,Cathodes,Loaded,On,A,Train,In,A,Copper,Mine

At the recent African Mining Indaba, Zambian President Hakainde Hichilema stated that Zambia seeks to ramp up copper production from 830,000 tons per year to 3 million tons.

Zambia Plans To Increase Copper Production But Faces 3 Problems

JINCHUAN GROUP INTL RES by Jinchuan Group International Resources Co., Ltd.

Jinchuan Group International Resources Co Ltd

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Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Saudi Arabia&#8217;s Manara Minerals Investment are reportedly interested in buying First Quantum Minerals&#8216; (OTCPK: FQVLF) <a href="https://www.benzinga.com/markets/commodities/24/03/37466646/zambia-plans-to-increase-copper-production-but-faces-3-problems">Zambian assets</a>.



What Happened: According to Bloomberg News, potential buyers are circling First Quantum-owned assets. 



In addition to Rio Tinto and Manara, Japanese trading houses Mitsui &amp; Co. and Sumitomo Corp. are considering bids. 



The Sentinel and Kansanshi mines are estimated <a href="https://www.mining-technology.com/news/first-quantum-zambia-mines-sale/">at</a> $6 billion. 



Zambia accounted for about half of First Quantum's copper output and revenue last year, delivering more than $450 million in operating profit. 



See Also: <a href="https://www.benzinga.com/news/24/04/38313888/new-canadian-budget-deemed-mixed-bag-for-mining-sector">New Canadian Budget Deemed Mixed Bag For Mining Sector</a>



Why It Matters: First Quantum&#8217;s management has been working on a restructuring, including <a href="https://www.benzinga.com/news/asset-sales">cost-cutting and asset sales</a>. 



The company has raised substantial capital, including $1 billion from stock sales and $1.6 billion from note offerings.



The proceeds come as the company faces a shutdown of its flagship Cobre Panama mine. The mine could come back online depending on how the <a href="https://www.benzinga.com/news/24/02/37130299/first-quantum-awaits-general-elections-in-may-maintains-hope-for-cobre-copper-mine">Panamanian elections</a> turn out in May, 



Meanwhile, Zambia&#8217;s mining sector faces challenges in energy supply. The nation is heavily reliant on hydroelectric power. Ongoing droughts have led to rolling blackouts, further complicating mining operations.



Additionally, <a href="https://www.benzinga.com/markets/commodities/24/03/37466646/zambia-plans-to-increase-copper-production-but-faces-3-problems">declining ore grades</a> pose a significant concern for miners in Zambia, affecting major operations like Kansanshi and Jinchuan Group's (OTCPK: JGRRF) Chibuluma. 



Efficient mineral mapping systems are crucial to addressing this issue and ensuring the industry&#8217;s sustainability.



Fiscal policies, especially tax regimes, also contribute to challenges. Zambia set ambitious plans for copper production. Copper is a crucial component in electric vehicles and renewable energy infrastructure. 



Finance minister Situmbeko Muskotwane expects copper production to reach <a href="https://www.benzinga.com/markets/commodities/24/04/38115830/zambia-mining-boom-the-road-to-1-million-tons-of-copper">1 million tons by 2026</a>.



Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!



See Also: <a href="https://www.benzinga.com/markets/commodities/24/04/38295033/rio-tintos-next-chief-commercial-officer-says-building-mines-is-better-than-buying-heres-how-">Rio Tinto&#8217;s Next Chief Commercial Officer Says Building Mines Is Better Than Buying: Here&#8217;s How Long It Takes</a>



Image: Shutterstock

Rio Tinto, Saudi Arabia's Manara Emerge As Likely Bidders For First Quantum's Zambian Assets: Report

At the recent African Mining Indaba, Zambian President Hakainde Hichilema stated that Zambia seeks to ramp up copper production from 830,000 tons per year to 3 million tons. 



A recent mineral exploration supports this plan as KoBold Metals, an AI-powered mining exploration startup, announced the largest Zambian copper deposit discovery in <a href="https://www.benzinga.com/news/24/02/36940360/kobold-metals-announces-historic-copper-discovery-in-zambia">over a century</a>.



Copper constitutes a significant portion of Zambia&#8217;s annual revenue, with exports contributing over $6 billion. The nation, second only to the Democratic Republic of Congo in African copper production, is keen on leveraging its copper industry for economic growth.



Still, this country, a key player in the African copper mining industry, faces significant challenges in this effort. A recent <a href="https://www.theigc.org/publications/positioning-zambia-copper-plus-future">report</a> by the London School of Economics International Growth Centre (IGC) sheds light on the issues, including declining ore quality, energy supply issues and uncertain fiscal policies.



Now Read: <a href="https://www.benzinga.com/news/24/02/37130299/first-quantum-awaits-general-elections-in-may-maintains-hope-for-cobre-copper-mine">First Quantum Awaits General Elections In May, Maintains Hope For Cobre Copper Mine</a>



The first major concern is the declining quality of copper grades, particularly in the Copperbelt province. Among the ten copper mines, large mines like Kansanshi (majority owned by First Quantum (OTCPK: FQVLF)) and Chibulma (majority owned by Jinchuan Group (OTCPK: JGRRF)) have <a href="https://www.miningnewszambia.com/lower-feed-grades-affect-kansanshi-mine/">experienced</a> ore grade decline. The report suggests that efficient mineral mapping systems are essential to combat this issue and ensure the industry&#8217;s sustainable development.



Energy supply poses another challenge, with Zambia heavily dependent on hydroelectric plants for 80% of its electricity. Changing weather patterns due to climate change affect hydroelectricity generation, impacting the mining sector&#8217;s energy needs. The report recommends exploring alternatives like solar power, given Zambia&#8217;s proximity to the equator.



Fiscal policies, especially tax regimes, also contribute to the challenges mining operations face in Zambia. The country has experienced uncertainty in its taxation policies, affecting investor confidence. Learning from successful fiscal <a href="https://www.lse.ac.uk/Research/research-impact-case-studies/2021/tax-reform-in-Chile">reforms</a> in Chile could provide insights into stabilizing Zambia&#8217;s tax environment.



The current focus of Zambia&#8217;s mining industry is primarily on extraction and early-stage refinement. The country looks to address challenges to fully capitalize on downstream activities and move up the global value chain, particularly as the government tries to negotiate higher state participation in future projects, as stated by Mines Minister Paul Kabuswe and reported <a href="https://www.reuters.com/markets/commodities/zambia-set-negotiate-bigger-stakes-new-mining-projects-2024-02-06/">by</a> Reuters. 



The government seeks to enhance revenue and ensure social impact without discouraging potential investors, which is a delicate balance to achieve.



Also Read: <a href="https://www.benzinga.com/m-a/24/03/37459629/uranium-surge-revives-old-mines-sparks-mergers-across-sector">Uranium Surge Revives Old Mines, Sparks Mergers Across Sector</a>



Image: Shutterstock

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