China's Zijin to enter RTB Bor and Canada's Nevsun – USD 4 billion to be invested in opening of mines

The Chinese mining company Zijin, the strategic partner of RTB Bor, has announced a takeover of Nevsun, a Canadian company which owns the Bisha zinc mine in Eritrea, as well as exploratory rights at the Cukaru Peki location, near Bor, considered to be the most important copper and gold resource in the world, Novosti learns.

This way, with a merger between RTB Bor and Nevsun, the Chinese company might become the owners of the biggest copper and gold mine in Europe.

It is expected that Zijin should simultaneously take over the management of both RTB Bor and Nevsun in early 2019 at the latest. The Chinese corporation obligates to invest USD 1.24 billion in the opening of new mines in Bor, on top of spending USD 200 million to repay old debts, whereas the amount of USD 1.4 billion has been set aside for the purchase of the Canadian company.

With the takeover of Nevsun, the Chinese company should invest around USD 700 million in the activation of the upper part of the Cukaru Peki site alone, and the mine should start working in 2020. The exploitation in the lower part of the site would follow, which is an investment worth 1.5 to 2 billion dollars, as the site is located at a great depth.

At least USD 4 billion is therefore expected to be invested in the opening of new mines in this area in the upcoming period. It is estimated that the Cukaru Peki site alone holds nearly 15 million tons of copper and close to 400 tons of gold, but 54% of the lower part remains owned by the American giant Freeport-McMoRan.

Serbia Zijin Copper doo Bor

Zijin Mining Group Co Beijing

Nevsun Resources Ltd.

Freeport-McMoRan Copper & Gold Phoenix Arizona

RTB Bor

Zijin

Nevsun

Freeport McMoRan

Cukaru Peki site

takeover of RTB Bor

takeover of Nevsun

opening of new mines in Bor

exploitation of copper

exploitation of gold

copper

gold

copper mine

gold mine