Zijin Mining cuts copper output forecast due to mine flooding

Zijin Mining Group (SSE:601899) has revised its 2025 copper production guidance downwards after flooding disrupted operations at the Kamoa-Kakula copper mine. A series of seismic events led to the failure of deep-water drainage systems, resulting in the flooding of the eastern section of the Kakula mine. Consequently, the 2025 mineral copper production target for Kamoa-Kakula has been lowered from 520,000-580,000 tonnes to 370,000-420,000 tonnes. As Zijin Mining holds approximately 44.44% effective equity in the mine, its share of copper production is projected to decrease by 44,000-93,000 tonnes. Zijin Mining will install higher power pumps with long term drainage solutions to try and alleviate the issue, however the event will impact the company's net profits attributable to owners of the parent company for 2025. The firm reported that Kamoa-Kakula contributed CNY 1.72 billion in net profit to Zijin Mining in 2024.