Nornickel Advances Plans for Copper Smelter in Southern China
According to Bloomberg, Nornickel is moving forward with its plans to relocate copper smelting operations from Norilsk to China, focusing on the construction of a metallurgical plant in Fangchenggang, a port city on the coast of the South China Sea.
A major hub for cargo transshipment to China, Vietnam, and other countries, Fangchenggang’s turnover rose by 5.5% in the first half of 2024 to 157.2 million tonnes.
The proposed plant is expected to have an annual capacity of 500,000 tonnes, using raw materials sourced from Nornickel's mines, Bloomberg reported citing unnamed sources in China.
Plans for the plant in China were first announced in April of this year, when Nornickel President Vladimir Potanin confirmed the intent to relocate the Copper Plant from Norilsk and collaborate with a Chinese partner. By July, it was reported that China Copper, one of the largest copper producers in China, could potentially join Nornickel in the venture.
Currently, Fangchenggang is home to a smelter owned by Jinchuan Group, which has a capacity of up to 700,000 tonnes of copper annually. As China remains the largest consumer of copper, accounting for approximately half of the 27 million tonnes of global production, the new plant's location is ideal for tapping into this growing demand.
Copper consumption in China is projected to increase significantly in the coming years, driven by the expansion of electric vehicle production, solar and wind power infrastructure, and grid development. By 2030, China's copper demand could reach 20 million tonnes annually. With the new Nornickel facility located at the heart of this demand center, it is poised to take full advantage of the growing market.
In addition to copper production, the future Nornickel plant will also generate sulphuric acid as a by-product, which can be marketed locally for use in phosphate fertilizer production, dyes, and chemical fibers.
Nornickel remains one of the world's leading producers of base and precious metals. By the end of 2024, the company forecasts production of 184-194 thousand tonnes of nickel, 334-354 thousand tonnes of copper, 2.296-2.451 million troy ounces of palladium, and 567-605 thousand troy ounces of platinum.
