China’s Zijin Mining has reached a significant financial milestone with its Serbian operations, as combined profits from its key subsidiaries surpass €1 billion. This achievement underscores Serbia’s growing status as a leading hub for copper and gold extraction in Europe, driven by sustained high metal prices and an increase in export activities.
Recent financial reports indicate that both Serbia Zijin Mining and Serbia Zijin Copper have experienced substantial growth in earnings, outpacing revenue increases. Year-on-year revenues rose approximately 20%, while profits grew even more rapidly, reflecting favorable global copper prices and enhanced operational efficiency at the Bor and Čukaru Peki sites.
In 2024, the two companies reported nearly €1 billion in combined profits, with Zijin Mining contributing about €715 million and Zijin Copper generating around €252 million. The latest financial results elevate this total above the billion-euro mark, positioning Zijin as the most profitable industrial entity in Serbia by a considerable margin.
Revenue growth for Serbia Zijin Mining has also been notable, with recent filings showing revenues reaching between 180 and 213 billion dinars (€1.5 to €1.8 billion). This growth is attributed to increased concentrate production and the full-scale ramp-up of underground operations, with expectations of continued double-digit growth through the 2026 reporting cycle.
The transformation of the Bor mining complex has been pivotal, shifting from a historically unprofitable asset to a high-margin export powerhouse. Before Zijin’s involvement, the former RTB Bor faced over €1 billion in accumulated losses and required repeated government interventions. The revitalization of this asset is now central to Serbia’s export and profit framework.
Zijin’s operational strategy in Serbia is anchored by three main components: high-grade copper-gold extraction at Čukaru Peki, expanded smelting and refining capabilities through Zijin Copper, and ongoing investments in exploration and capacity enhancement. To date, Zijin has invested over €2.2 billion into its Serbian mining operations, focusing on infrastructure development and upgrading processing technologies to meet global standards.
At the macroeconomic level, Zijin ranks among Serbia’s largest exporters, significantly influencing the country’s non-ferrous metals trade balance. The two entities account for a dominant share of profits within the Chinese corporate sector operating in Serbia, generating more than 90% of total profits among prominent Chinese firms in the region.
The profit surge aligns with broader commodity market trends. The copper market remains tight due to rising demand driven by electrification initiatives and energy transition supply chains. Consequently, Serbia’s role—via Zijin—as a near-EU base for copper and gold production is increasingly strategic, particularly in light of tightening carbon border adjustment mechanisms affecting imports into the European Union.
Nonetheless, the financial landscape reveals a complex capital flow structure. A substantial portion of profits is allocated for dividend payments to parent companies based outside Serbia. Previous reporting periods indicated that tens of billions of dinars were designated for dividend distribution, illustrating the dual nature of investment activity—strong domestic industrial performance alongside significant outward capital flows.
While revenue increases have led to higher operating expenses—particularly concerning energy, materials, and labor—margin expansion has continued. This suggests that ore grades, operational efficiencies, and pricing power are effectively offsetting inflationary pressures on costs.
Overall, Serbia’s mining sector appears to have entered a new phase characterized by high-margin exports, dominance of foreign capital, and integration into global metal supply chains. Within this context, Zijin’s operations are not merely a large industrial asset but have become a crucial profit center influencing trade balances, fiscal contributions, and industrial policy directions.
Looking ahead, key factors will include commodity price trends, EU carbon-border regulations, and potential integration of downstream processing within Europe. If copper prices remain elevated and Serbia manages to capture additional value through processing or fabrication activities, the existing profit base could evolve into a more extensive industrial framework.
Currently, it is clear that Zijin’s Serbian operations have surpassed the €1 billion profit threshold, solidifying their position as the most financially influential industrial asset in the country and one of the most profitable mining entities in Southeast Europe.
