Zijin Expansion Plan Targets New Copper and Gold Capacity in Eastern Serbia

A proposed 126-square-kilometre spatial plan covering parts of Bor and Zaječar could define the next phase of Serbia’s copper and gold industry through 2050, combining underground mining expansion, a new copper-gold development and additional metallurgical infrastructure.

The planning framework includes three major elements: development of the Lower Zone of the Čukaru Peki underground deposit, construction of a new copper and gold mine at Malka Golaja, and a new smelting complex supported by transport, electricity, water and waste-management systems.

The first implementation phase runs until 2035. The process does not represent an approved construction programme or a final investment decision, but establishes the planning area where technical studies, environmental assessments, land acquisition procedures and permitting activities can proceed.

Multiple Zijin Entities Involved in Eastern Serbia Development

The proposed industrial expansion combines assets operated through different corporate structures. Serbia Zijin Mining operates the Čukaru Peki mine, while the former RTB Bor mining and metallurgical operations are managed through Serbia Zijin Copper, in which Zijin Mining holds 63% and the Government of Serbia retains 37% ownership.

A separate company has been established for Malka Golaja, with 95% ownership held by Serbia Zijin Mining and the remaining stake controlled by Sino-Zijin Resources, a company linked to Zijin.

These ownership structures determine financing responsibilities, revenue flows, cost allocation and the Serbian state’s economic participation. Although the spatial plan connects the physical infrastructure of the projects, ownership interests differ between Čukaru Peki, Malka Golaja and the existing Bor mining and smelting system.

Since acquiring the former RTB Bor assets, Zijin has significantly expanded its presence in Serbia. Reported cumulative investment in Serbian operations reached approximately $3.27 billion by April 2025, exceeding initial expectations associated with the acquisition. Copper and gold production have become increasingly important contributors to Serbia’s exports, industrial output and employment in eastern regions.

Čukaru Peki Lower Zone Requires Deep Mining Investment

The planned expansion would extend the development of Čukaru Peki, where the Upper Zone contains high-grade copper and gold mineralisation and the deeper Lower Zone represents a larger but technically more complex resource. Development of a deep underground mine requires significant infrastructure, including shafts or declines, ventilation systems, mine dewatering, underground crushing, material transport systems, tailings facilities and ground-control measures. Capital requirements increase as mining depth and operational complexity expand.

The Malka Golaja project represents another potential source of future copper and gold production. Zijin has described the deposit as a relatively high-grade discovery within the Timok metallogenic belt. Its commercial viability will depend on further resource definition, metallurgical performance, deposit depth, recovery rates and supporting infrastructure. The establishment of a dedicated corporate entity for Malka Golaja indicates strategic interest in the project, although it does not replace the requirement for a bankable feasibility study.

New Smelting Capacity Central to Industrial Expansion

A potential new smelting complex represents one of the most significant elements of the proposed programme. The existing Bor smelting complex has undergone modernization, but additional mine output could require expanded metallurgical capacity or a new facility outside densely populated areas of Bor. Relocating future smelting operations could reduce exposure in urban areas while creating new requirements related to land use, water management and emissions control at a different location.

No official capital expenditure estimate has been disclosed for the integrated development programme. Indicative engineering scenarios suggest that a project of this scale could involve approximately €1.2 billion to €2.0 billion for deep underground mining, €1.0 billion to €1.6 billion for a new smelting and refining complex, and an additional €800 million to €1.5 billion for supporting infrastructure including tailings systems, power supply, water facilities, transport links and environmental measures. These scenarios indicate a potential long-term investment range of approximately €3 billion to €5 billion, excluding financing costs and certain land acquisition or resettlement expenses. The figures are engineering estimates and do not represent company guidance.

Copper Supply Expansion Linked to European Industrial Demand

The planned development would represent one of the largest industrial investment programmes in the Western Balkans if implemented. Expanded copper production could increase Serbian exports and strengthen the country’s role in European supply chains. Copper demand continues to be supported by electricity networks, renewable energy development, electric vehicles, data centres and defence-related investment. European industrial policy has increasingly emphasized secure access to copper and other strategic raw materials.

Serbia’s location provides potential logistical advantages for supplying European manufacturing markets. Copper production closer to EU industrial centres could support cable, transformer, electric motor and automotive industries by reducing transport exposure. The economic impact depends on the amount of domestic value created through processing, local procurement, engineering services, taxation and the state’s ownership participation rather than only royalties, employment and export volumes.

Energy, Emissions and Environmental Requirements

A new smelting facility would need to address energy availability, concentrate quality, sulphur management and environmental controls. Metallurgical operations are highly energy-intensive and would require reliable electricity supply, potentially including dedicated substations and long-term power arrangements. Serbia’s energy system continues to manage coal dependence, hydrological variability and expansion of renewable generation, making energy supply planning an important element of any large industrial project.

The carbon intensity of production is also becoming increasingly relevant. Although the EU Carbon Border Adjustment Mechanism does not currently apply to all copper products in the same manner as sectors such as steel, cement, aluminium and fertilizers, European customers are expanding carbon requirements across supply chains. Electricity consumption data, direct emissions measurement and verified material flows are expected to influence access to premium markets and sustainable financing structures.

Environmental management requirements extend beyond carbon emissions. A modern smelting operation requires sulphur dioxide capture systems, acid production facilities, continuous emissions monitoring and transparent reporting. Water management must address industrial water use, process recycling, mine dewatering and protection of surface and groundwater resources. Tailings storage facilities would require independent engineering review, geotechnical monitoring and emergency planning throughout the operational and closure phases.

Resettlement and Infrastructure Planning Remain Key Issues

The spatial plan recognizes that certain areas may require population relocation if technical studies determine that safe living conditions cannot be maintained. Resettlement represents a significant social issue involving not only housing compensation but also agricultural land, community networks, public services, cultural assets and livelihoods. International project standards typically require detailed resettlement planning, including population surveys, asset valuation, livelihood restoration measures and grievance mechanisms. Poor resettlement management can create operational, legal and political risks for large mining projects.

The long-term development horizon extending to 2050 also requires assessment of cumulative impacts. Environmental reviews must consider the combined effects of the Lower Zone of Čukaru Peki, Malka Golaja, existing mining operations, tailings facilities, smelting capacity and population changes across Bor and Zaječar.

Infrastructure responsibilities will also require clarification. Roads, rail infrastructure, electricity substations and water systems may serve both mining operations and surrounding communities. Development agreements would need to define construction responsibilities, ownership, maintenance obligations and future rehabilitation requirements.

Government Role Includes Fiscal and Operational Oversight

For the Serbian government, the project involves more than permitting procedures. Authorities must address fiscal stability, royalty arrangements, dividend expectations from Serbia Zijin Copper, local procurement commitments, environmental safeguards and mine-closure funding. Mining revenues are influenced by copper grades, recovery rates, commodity prices and processing costs. Transparent production reporting and transfer-pricing controls are necessary to ensure accurate taxation and economic value retention.

Zijin has the technical capacity and financial resources to develop large-scale copper projects, supported by its global operations and access to Chinese financing sources. However, the scale of the planned eastern Serbian mining-industrial system increases the importance of project governance, construction management and environmental performance. The proposed 126-square-kilometre planning area represents a shift from individual mine operations toward a broader regional mining and industrial complex. The programme would expand underground mining capacity, introduce additional metallurgical infrastructure and create supporting systems designed around decades of production.