Zijin’s Bor Expansion Plan Targets Major Integrated Copper Complex in Serbia

Serbia’s copper industry could undergo a major transformation under a proposed development framework covering 126 square kilometres around Bor and Zaječar, combining mine expansion, new metallurgical capacity and supporting infrastructure through 2050.

The plan includes development of the Čukaru Peki Lower Zone, the potential future exploitation of the Malka Golaja copper-gold deposit, construction of a new smelter and refinery complex with capacity of up to 400,000 tonnes of anode and cathode copper annually, and expansion of transport, energy, water and waste-management systems.

The proposal remains at an early planning stage and does not represent a final investment decision, construction permit or completed technical design. Serbia Zijin Mining has stated that final production capacities, locations, construction schedules and investment values will only be determined after detailed engineering studies, environmental assessments and statutory procedures. The planned development would expand Bor from an existing mining and metallurgical centre into a larger integrated copper production hub.

Zijin links mine expansion with new processing capacity

The proposed industrial zone would connect the existing Čukaru Peki operation with the deeper Lower Zone resource, while incorporating the future potential of Malka Golaja.

The planned metallurgical complex would be located outside the urban area of Bor and would include:

• a new copper smelter and refinery;
• a sulphuric-acid plant;
• arsenic-removal facilities;
• acid pipelines;
• new tailings and mining-waste storage areas;
• electricity connections;
• water infrastructure;
• possible relocation of sections of the Bor–Zaječar state road and existing electricity infrastructure.

The development follows strong recent production growth from Zijin’s Serbian operations. According to the company, its Serbian mines produced 296,000 tonnes of copper and approximately 9.1 tonnes of gold in 2025.

The Čukaru Peki mine accounted for approximately 172,300 tonnes of copper and 5.18 tonnes of gold, making it the largest contributor within Zijin’s Serbian mining portfolio. Zijin has stated that it is targeting eventual combined copper production of approximately 450,000 tonnes annually from Čukaru Peki and Bor mining operations, which it says could position the company as Europe’s largest copper producer.

New smelter would expand domestic value creation

A smelter and refinery with initial capacity of 400,000 tonnes per year would broadly match Zijin’s projected future mining output. The facility would allow Serbia to process a larger share of copper concentrate domestically rather than exporting intermediate material or relying on the existing Bor metallurgical complex.

Copper concentrate is not a finished industrial product and its value is affected by treatment and refining charges, impurity penalties, transport expenses and global smelting capacity. Domestic production of anode and cathode copper could retain more processing value inside Serbia and create opportunities for additional industrial activity, including production of:

• copper wire rod;
• cables;
• copper tubes;
• alloys;
• electrical components.

The project therefore represents a possible shift in Serbia’s role within the European copper supply chain, moving from mining and concentrate production toward refined metal output at a time of rising demand linked to electrification, grid investment, renewable energy development and industrial production.

A 400,000-tonne refined copper facility would be significant by European standards. At a hypothetical copper price of $10,000 per tonne, annual metal output would represent a gross market value of approximately $4 billion, before accounting for gold and silver by-products, treatment charges, operating costs, concentrate ownership and hedging.

Expansion potential includes larger metallurgical phase

Planning documents reportedly reserve land for a possible additional 450,000 tonnes of metallurgical capacity. The provision does not represent approval or commercial commitment for an 850,000-tonne complex, but indicates that Zijin and authorities want to preserve the option for a larger second development phase. Such an expansion would require additional copper concentrate from domestic mines, imported material or a combination of both.

The future supply balance will therefore become a key commercial factor. Zijin’s stated Serbian mining target of approximately 450,000 tonnes of copper annually could support the first-stage smelter, depending on recovery rates, concentrate quality, production schedules and blending requirements.

A larger second phase could require concentrate from Zijin’s international operations or third-party mines, potentially turning Bor into a regional metallurgical centre. This would increase exposure to international concentrate markets, transport logistics, treatment charges and imported feed quality, while giving Zijin greater flexibility in directing concentrate between its global assets.

Investment requirements remain under evaluation

No official investment value has been announced. Based on international project benchmarks, a new 400,000-tonne copper smelter and refinery, including sulphur capture, acid production, arsenic treatment, oxygen supply, power systems and wastewater facilities, could require approximately €1.5 billion to €3 billion depending on technology and infrastructure requirements.

The broader development programme, including the Čukaru Peki Lower Zone, Malka Golaja, underground mining infrastructure, concentrators, tailings facilities, water systems, roads and electricity connections, could require a total investment envelope of approximately €4 billion to €7 billion or more through 2050. These figures are analytical estimates rather than company guidance. Final costs will depend on mine design, underground development depth, processing capacity, production sequencing and reuse of existing Bor infrastructure.

Lower Zone development presents technical challenges

The Čukaru Peki Lower Zone is expected to be one of the most technically demanding elements of the expansion. Unlike the high-grade Upper Zone that supported rapid production growth at Čukaru Peki, the Lower Zone is a much larger and deeper porphyry copper system.

Its development would require extensive underground infrastructure, including:

• access tunnels;
• ventilation systems;
• materials handling;
• dewatering;
• ground-control systems;
• long-term subsidence management.

The mining method selected will influence project economics and surface impacts. Large-scale underground methods such as block caving can reduce operating costs and support extraction of large ore bodies, but they may also create progressive surface subsidence.

The planning framework therefore includes possible relocation of roads, electricity infrastructure and households if monitoring determines that safe living conditions cannot be maintained. The current plan does not define the final subsidence area, affected properties or the number of residents who could require relocation.

Social impacts and environmental planning remain unresolved

The planning documents identify possible resettlement in areas already affected by mining activity but leave future studies and procedures to determine eligibility criteria, timing and compensation arrangements. Property owners could face uncertainty if planning restrictions affect construction rights or market values before final acquisition decisions are made. A future resettlement framework would need to address replacement-cost valuation, livelihood restoration, informal land use, transitional support, grievance mechanisms and independent verification.

The planned location of the new smelter outside Bor’s urban area could reduce direct exposure of residents to sulphur dioxide, dust, industrial traffic and noise compared with existing arrangements. Environmental performance would depend on technology choices, sulphur capture rates, emissions controls, concentrate storage, acid handling and continuous monitoring systems.

Water, waste and biodiversity issues require assessment

The proposed sulphuric-acid plant would allow sulphur from copper concentrate to be captured and converted into a commercial product rather than released as sulphur dioxide. The facility would require reliable acid storage, transport systems and customer demand because production cannot continue indefinitely if storage capacity is exhausted. Arsenic management represents another major technical issue.

The future concentrate chemistry will influence smelter economics because arsenic levels can affect throughput, operating costs, residue management and environmental obligations. The planned arsenic-removal facility will require detailed analysis of treatment technology, residue volumes and disposal methods. Water availability is another major consideration. The concept includes water recycling but reportedly retains potential abstraction options from the Crni Timok River, the Danube and Bor Lake.

Local environmental representatives have claimed that potential abstraction from Crni Timok could exceed 800 litres per second, which they argue could represent a significant share of summer river flow. The figure and operating conditions require confirmation through detailed water-balance studies. Future assessments will need to examine drought conditions, climate impacts, mine dewatering, recycling levels, evaporation, seepage, emergency storage and discharge limits.

Tailings management becomes strategic infrastructure

The long-term waste-management system will be another critical element of the project. Early consultation concerns have referred to potential production of up to 1.08 billion tonnes of flotation tailings and a possible new storage footprint of approximately 1,900 hectares in the Krivelj River valley. These figures remain subject to confirmation through final mine plans, production forecasts and waste studies.

Tailings facilities would need to address geotechnical stability, seismic conditions, extreme rainfall, groundwater pathways, downstream risks and long-term closure obligations. Financial planning would need to include resources for rehabilitation, closure and post-closure monitoring.

Eastern Serbia already faces environmental challenges linked to historic mining activity. Planning materials reportedly recognise that mining has affected approximately 4,600 hectares around Bor and that the Borska River remains severely polluted. The expansion programme would therefore require assessment of combined impacts from mining, metallurgy, waste storage, transport, emissions, water use and land changes.

Zijin development enters strategic metals debate

Biodiversity considerations may also influence permitting and financing. Local researchers have reported that the wider Malka Golaja area contains hundreds of protected plant and animal species and habitats recognised under European conservation frameworks. The environmental approval process would require detailed surveys, analysis of alternatives and application of mitigation measures covering avoidance, reduction, restoration and potential compensation.

Serbia Zijin Mining has described the current document as the beginning of the planning process and said that consultation is intended to collect concerns and inform further studies. The next stages would require detailed engineering, resource assessment, environmental documentation, social-impact analysis and technical reviews before construction decisions are made.

Serbia currently holds a 37% stake in Serbia Zijin Copper, while Zijin owns 63% of the former RTB Bor business. Čukaru Peki is operated through Zijin’s wholly owned Serbian mining subsidiary. The planned expansion could significantly increase Serbia’s role in Europe’s copper supply chain by combining mining, refining and potential downstream industrial development. The final outcome will depend on engineering preparation, environmental approvals, infrastructure planning and the commercial structure supporting the investment.