Serbia to become Europe’s no. 2 copper producer thanks to Cukaru Peki mine

Serbia Zijin Mining, a wholly-owned subsidiary of China’s Zijin Mining, has obtained a permit from the Serbian government to start mining activities at the Cukaru Peki copper and gold mine, part of the Timok project.

Serbia’s mining ministry said the country would become Europe’s second-largest copper producer once the mine kicks off operations. (See News reported.)

Cukaru Peki was originally slated to begin production in the summer of 2021, and the mine is now expected to start production in the fourth quarter of the year.

The mine will start with an initial average copper output of 91,000 tonnes a year (and annual gold production of about 200,000 ounces), and will gradually reach a peak 135,000 tonnes of copper a year.

The Serbian government anticipates the country’s booming mining sector will start generating between 4% and 5% of its total GDP in less than 10 years, a significant increase from its current 2%.

Zijin’s local subsidiary currently operates the country’s sole copper complex RTB Bor.

Workers at the Cukaru Peki drilling site in 2018. Credit: Reservoir Minerals.

In April, the company had to temporarily halt work at the mine due to an alleged breach of the country’s environmental standards. The unit was ordered to complete a wastewater treatment plant on priority at the mine to avoid polluting the River Pek, a tributary of the Danube.

Serbia Zijin Copper has committed to invest US$408 million this year, up from US$360 million in 2020, to overhaul and expand its four mines and a smelter.

The plan also includes improving environmental protection in the heavily polluted Bor region, in Serbia’s east.

China has spent billions of euros in Serbia, mostly in the form of soft loans to finance highway and energy projects. The investments are part of Beijing’s so-called belt and road initiative to open new foreign trade links for local companies.