JCHX(603979) Zheng Quan Shi Bao Wang·2025-01-19 10:46Core Viewpoint - The company plans to invest approximately $751 million in the construction of the Lonshi copper mine's eastern section in the Democratic Republic of the Congo, enhancing its integrated competitive advantage in the mining industry [1][7]. Group 1: Project Overview - The project will be implemented by the company's wholly-owned subsidiary, Sabwe, with the western section of the Lonshi copper mine already in production since Q4 2023, yielding an annual copper metal output of about 40,000 tons [2]. - The eastern section of the mine has identified a total ore volume of 26.048 million tons, with a copper metal content of 1.04 million tons and an average grade of 3.99% as of October 31, 2024 [2]. Group 2: Construction and Production Details - The construction period for the project is estimated to be 4.5 years, with production expected to reach full capacity in the fourth year, providing production services for 12 years [4]. - The maximum combined output from both the eastern and western sections of the mine is projected to be 4.5 million tons per year, with a total annual copper metal output of approximately 100,000 tons once the eastern section reaches full production [5][6]. Group 3: Financial Aspects - The total estimated investment for the eastern section is $751 million, which includes $604 million for construction, $77.23 million for construction period interest, and $70.42 million for working capital [6]. - Funding for the project will be sourced from 30% self-financing and 70% bank loans, which may increase the company's financial costs [7].