Mei Ri Jing Ji Xin Wen·2025-06-13 14:43Core Viewpoint - Zijin Mining's Kamoa-Kakula copper mine in the Democratic Republic of Congo has suspended some underground operations due to multiple seismic events, which may significantly impact the company's copper production and net profit in the coming years [1][2][7]. Group 1: Production Impact - The Kamoa-Kakula copper mine is expected to see a production reduction of 44,000 to 93,000 tons in 2025, representing a year-on-year decline of approximately 22.6% to 47.8% compared to last year's output [1][7]. - The mine's production guidance for 2025 has been revised down from 520,000 to 580,000 tons to a new range of 370,000 to 420,000 tons due to the flooding incident [7]. Group 2: Financial Implications - The Kamoa-Kakula mine is projected to contribute approximately 1.72 billion RMB to Zijin Mining's net profit in 2024, accounting for about 5.37% of the company's total net profit for that year [3]. - The anticipated reduction in production will likely affect Zijin Mining's net profit for 2025, although the company maintains that the mine has strong internal adjustment capabilities due to its significant resource base [7]. Group 3: Operational Response - Following the flooding, Kamoa Copper has established an emergency response team and is working with international experts to assess and manage the situation [2][3]. - The company is in the process of procuring and installing high-capacity pumps and a permanent drainage system, with full drainage operations expected to commence by August 2025 [3][7]. Group 4: Future Outlook - Despite the current challenges, Zijin Mining remains optimistic about the Kamoa-Kakula mine's long-term potential, with expectations of reaching an annual production capacity of 600,000 tons once fully operational [7][8].