(Yicai) Jan. 20 -- JCHX Mining Management said the Chinese firm will spend about USD751 million to develop the Lonshi Copper Mine East District in the Democratic Republic of the Congo, aiming to expand production of the metal used in products such as smartphones and electric cars.

JCHX's unit Sabwe Mining Sarl will oversee the new mining and processing project at Lonshi Mine located in Katanga province, its parent firm said late yesterday. Development work is scheduled to take four and a half years, with the mine set to operate for 12 years after reaching full production in the fourth year.

As of last October, about 26 million tons of ore have been found in the mine’s east zone, the Beijing-based company said, with more than 1 million tons of copper at an average grade of 3.99 percent. But the east zone has deeper deposits than the west zone, it added.

The west district went live in the fourth quarter of 2023 and has an annual production capacity of about 40,000 tons of copper at full capacity., JCHX noted.

According to a feasibility report, the east zone’s designed mining and processing capacity will be 3.5 million tons a year, with a total estimated investment of USD751 million. Thirty percent of that will be self-financed, while the rest will come from bank loans. The report also noted that China has a copper resource shortage and needs to import about 75 percent of what it uses annually.

JCHX, a leading mining services provider, has undertaken several successful international mine engineering projects, including in Lubambe and Luanshya in Zambia. The company fully acquired Sky Pearl Exploration, which held the mining rights to the Lonshi Mine through its unit Sabwe Mining Sarl, in April 2021.

JCHX’s shares [SHA: 603979] closed unchanged at CNY40.97 (USD5.60) each in Shanghai today. They have gained 15 percent this year to date.

Editor: Martin Kadiev