On August 4, the stock price of JCHX fell. As of 10:38 am on August 4, JCHX dropped 0.54% to 71.17 yuan per share. In terms of news, the monthly investor relations activity summary (July 2026) announced by JCHX on August 3 shows: 1. Project Progress of the San Matias Copper-Gold-Silver Mine in Colombia The Environmental Impact Assessment (EIA) for the Alacran Copper-Gold-Silver Mine has received formal approval from Colombia's National Environmental Licensing Authority (ANLA). As of now, the technical, environmental, and social impact assessment process involving local communities, authorities, and government technical agencies has been satisfactorily completed. In the subsequent development and construction of the Alacran Copper-Gold-Silver Mine, the company will fully implement the social and economic protection requirements of the environmental permit, always adhering to the core principles of human rights protection, risk prevention, and collective well-being. By establishing a long-term communication and sharing mechanism, it will ensure that project operations coexist harmoniously with local communities for mutual benefit and win-win outcomes. According to the feasibility study (FS) for the Alacran Copper-Gold-Silver deposit completed in December 2023 (adopting the NI 43-101 standard), the Alacran Copper-Gold-Silver mine project is an open-pit mining and processing project, with an estimated investment of $420.4 million and a designed ore volume of 97.9 million tons within the pit limit. The construction period is 2 years, and the mine life is expected to be 14.2 years after completion. The project is expected to cumulatively recover 797 million pounds of copper, 550,000 ounces of gold, and 5.35 million ounces of silver. 2. Technological Transformation of the Lubambe Copper Mine Project Since completing the acquisition of the Lubambe Copper Mine in Zambia in H2 2024, the company has continuously strengthened its operation and management, while advancing geological exploration, mining production, beneficiation production, and the renovation of underground auxiliary systems. As the technological transformation plan is gradually implemented, the operational efficiency of the Lubambe Copper Mine will be continuously improved. 3. Remaining Recoverable Reserves and Seasonality of the Dikulushi Mine The company currently holds two mining rights (PE606 and PE13085) in the Katanga Province of southeastern DRC through its subsidiaries Jinjing Mining and Yuanjing Mining, with a mining right area of 68.77 square kilometers. The Dikulushi Copper Mine, which commenced production in December 2021, is part of the PE606 mining right. As of the end of December 2025, the Dikulushi Copper Mine has retained ore reserves of approximately 430,000 tons, with an average copper grade of 7.58%. Since the commencement of production at the Dikulushi Copper Mine, the company has continuously extended the mine's life cycle through simultaneous production and exploration, with significant results: the 2021 annual report disclosed a remaining mining life of 3.58 years, while the 2025 annual report disclosed a remaining mining life of 2.98 years. In the future, this approach of simultaneous production and exploration will continue. The production and sales of the Dikulushi Copper Mine take into account the local rainy season from November to April, and sales are not evenly distributed throughout the year. Generally, the rainy season affects the condition of peripheral roads around the mining area, thereby impacting product transportation, so sales are relatively lower during the rainy season. 4. Expansion and Construction of the Eastern Zone of the Lonshi Copper Mine According to the "Feasibility Study on the Eastern Zone Mining and Processing Project of the Lonshi Copper Mine in DRC" released by the company in January 2025, the eastern zone will adopt underground mining, with a designed annual mining scale of 2.5-3.5 million tons and a planned infrastructure period of 4.5 years. It will reach full production in the 4th year after commissioning, with a total service life of 12 years. To balance the service cycles of the eastern and western zones, the western zone will undergo year-by-year production cuts after the eastern zone commissions, with a combined maximum annual ore output of 4.5 million tons from underground mining in both zones. After the eastern zone reaches full production, the combined annual copper metal production of the eastern and western zones of the Lonshi Copper Mine will be approximately 100,000 tons. 5. Pricing Model of Mining Services Business The pricing model for mining services is cost-plus, based on the mine's resource endowment, technical difficulty of mining, etc., using industry-standard operational efficiency and operating costs as references for pricing. Generally, it is not linked to mineral resource product prices. 6. Listing on the Hong Kong Stock Exchange To further advance the company's global strategic layout, build an international capital operation platform, broaden diversified financing channels through international capital markets, further enhance the company's comprehensive competitiveness and continuously increase its international influence, and strengthen its core competitiveness, the company is planning to issue overseas-listed shares (H shares) and list on the Main Board of The Stock Exchange of Hong Kong Limited. The company is actively discussing the relevant work for this H-share issuance and listing. The specific details have not yet been determined. Once the specific plan is finalized, the H-share issuance and listing still need to be submitted to the company's board of directors and shareholders' meeting for deliberation, and require filing, approval, and/or clearance from relevant government and regulatory bodies such as the China Securities Regulatory Commission, the Hong Kong Stock Exchange, and the Securities and Futures Commission of Hong Kong. There is significant uncertainty as to whether the H-share issuance and listing can pass the deliberation, filing, and review procedures and ultimately be implemented. 7. Development Potential of Mining Services Business Adopting a target market strategy focused on "large markets, large owners, large projects," the company, on the one hand, consistently implements the philosophy of providing value-added services to mine owners with leading technology, gaining their recognition through high-quality mine construction services, and subsequently undertaking later mining operation and management business. On the other hand, by enhancing mine design and technology R&D, it has initially formed an integrated comprehensive business model encompassing mine construction, mining operation management, and mine design and technology R&D. This model can more effectively meet the needs of owners for mine construction and mining operations, better achieve a rapid and stable transition from infrastructure to production, shorten construction cycles, achieve rapid commissioning and full production, and save infrastructure investment for mine owners. At the same time, the development space for the company's mining services business will become broader. In the future, the growth of the mining services business will mainly come from two directions: first, newly undertaken external projects; second, incremental expansion of existing projects — large mines typically have multiple ore bodies, and their development is often carried out in stages. Specifically, when the first phase progresses to a certain stage, construction of the second phase will commence. During this process, owners will actively seek high-quality service providers. 8. Construction Progress of the Northern Mining Zone of the Phosphate Ore Mine The Liangchahe Phosphate Ore Northern Mining Zone has a production scale of 500,000 t/a and is currently under construction, aiming to be completed and put into production by the end of 2028. 9. View on the Trend of Copper Prices Looking at the current and upcoming period, the copper market faces a pronounced "tight balance" pattern. Supply side, production release is strictly limited by the dual constraints of declining average copper ore grades globally and insufficient long-term capital expenditure, and disruption risks at the mine end are intensifying. Demand side, the global energy transition (new energy sector) and infrastructure construction in emerging markets provide sustained and resilient demand support. Against this backdrop, copper prices are expected to drift higher over the medium and long term. 10. Future Development Strategy of the Company On the basis of maintaining stable development of its existing mine development business, the company relies on its accumulated advantages in technology, management, and industry to actively expand into the resource development sector, gradually exploring a development path of "mining services + resources." Driven by the dual engines of "mining services" and "resource development," it promotes the comprehensive transformation from a single mining services enterprise to a group-oriented mining company. 11. Competitive Advantages of the Company in the Industry With its deep expertise accumulated in mine construction and mining operation management, the company extends along the mining industry chain into areas such as mine resource development, design and R&D, and equipment manufacturing, steadily enhancing its integrated service and control capabilities for mining services. It can feed back experiences gained during construction and problems identified through the shortest channels and at the lowest cost to the development consulting and design phases, and incorporate the company's latest scientific research achievements into its design business to optimize design plans, enabling scientific and technological innovations to rapidly transform into productive forces applied in the resource development sector. This can better shorten the construction cycle of resource development, reduce unit production costs, and increase the safety margin in market competition for mineral products. Through the advantages of integrated operations, it improves resource project development efficiency, extends project life, and maximizes the economic value of resource projects. 12. Are There Plans for Further Mine Acquisitions? From a long-term strategic perspective, the company focuses on resource projects that match its scale and have value investment potential. Currently, the company already owns five mine resource projects, and therefore prefers to achieve reserve growth through exploration work on existing projects, viewing this as a more economical way to acquire resources. At the same time, leveraging its advantages in mine construction and operation, the company will also explore expanding its business through equity participation plus operation. In terms of performance, JCHX's Q1 2026 report disclosed on April 28 showed that the company achieved total operating revenue of 3.414 billion yuan, up 21.45% YoY, and net profit attributable to shareholders of 601 million yuan, up 42.55% YoY. For the increase in Q1 operating revenue and net profit, JCHX's announcement stated that it was mainly due to increased sales of mineral resource products (copper cathode, copper concentrates, iron ore) and rising copper product prices during the period. JCHX's 2025 annual report disclosed that the company's 2025 revenue was 13.894 billion yuan, up 39.74% YoY, and net profit attributable to shareholders was 2.339 billion yuan, up 47.66% YoY. JCHX stated in its 2025 annual report that the 39.74% increase in operating revenue and the 47.66% increase in net profit attributable to shareholders year-on-year were mainly due to the ramp-up and efficiency improvement of its captive mine projects in the mine resource development business during the reporting period. A research report from China Post Securities commenting on JCHX's performance shows that the resource segment experienced volume growth, while the mining services business was a slight drag. By business segment, in 2025, the mine resource business achieved revenue/gross profit of 6.986/3.121 billion yuan, up 117.67%/130.20% YoY, and the mining services business achieved combined revenue/gross profit of 6.613/1.515 billion yuan, up 1.06%/-13.47% YoY. The mine business saw both volume and price increases, while the decline in mining services was mainly due to the Lubambe Copper Mine being converted into an internal unit after acquisition, reducing recognized revenue and gross profit, and some projects being affected by declining operational volume/production ramp-up. Volume: In 2025, copper metal sales were 92,700 tons, up 88.16% YoY, and phosphate ore sales were 357,400 tons, down 1.00% YoY. The increase in copper metal production and sales was mainly due to the Lonshi Copper Mine reaching full production and releasing output, with Dikulushi and Lonshi Copper Mines exceeding production plans, and the Lubambe Copper Mine being consolidated for the full year. In Q1 2026, copper metal production and sales were 22,400/18,100 tons respectively, mainly affected by grade decline and the rainy season. Price: In 2025, copper prices rose 7.62% YoY, and in Q1 2026, they rose 36.72% YoY. Production in 2026 is expected to grow steadily, with huge expansion potential in the long term. In 2026, the company's captive resource projects plan to produce 100,300 tons of copper metal (equivalent) and sell 99,700 tons of copper metal (equivalent), and produce and sell 300,000 tons of phosphate ore; the Istanex Mountain magnetite project plans to produce and sell 1.25 million tons of iron ore concentrates. In the long term, the northern mining zone of the Liangchahe Phosphate Ore Mine is expected to be put into use by the end of 2028, with annual capacity expanding from 300,000 tons to 800,000 tons; the eastern zone of the Lonshi Copper Mine, after commissioning, can expand annual production from 40,000 tons to 100,000 tons; the Lubambe Copper Mine is under technological transformation, and after completion, it is expected to produce 35,000 tons of copper per year; the company's equity stake in the San Matias Copper-Gold-Silver Mine has reached 97.5%, and it is in the EIA approval stage. Risk warning: price fluctuation risk; project progress falling short of expectations risk; downstream demand falling short of expectations risk; model assumptions not aligning with reality; policy exceeding expectations risk, etc.

On July 30, Chengtun Mining’s share price declined. As of 13:22 on the 30th, Chengtun Mining was down 5.03% at 10.2 yuan per share. On the news front: Chengtun Mining’s 2026 semi-annual report released on July 30 showed that in H1 2026, the company achieved total operating revenue of 19.264 billion yuan, up 39.56% YoY; net profit attributable to shareholders of 1.804 billion yuan, up 71.37% YoY; and net profit after deducting non-recurring items of 1.913 billion yuan, up 64.63% YoY. Regarding its core business, Chengtun Mining stated in its semi-annual report that the company was committed to the development and utilization of energy metal resources, especially metal varieties required for new energy batteries, while also expanding into precious metals such as gold. The company focused primarily on copper, nickel, cobalt, and gold, with its main business types being energy metals, base metals, metal trading, and others. Chengtun Mining’s semi-annual report showed that in H1 2026, the company’s DRC copper-cobalt segment delivered stable output, with copper production reaching 132,200 mt in metal content, of which Brother Mining (BMS) achieved copper production of 74,400 mt in metal content. BMS’s specialized energy management system took shape. The Kalongwe project advanced in a coordinated manner in optimizing the production system and engineering construction; multiple technological transformation initiatives reduced material consumption, and optimized reuse of return water lowered energy consumption and enabled refined cost control. The copper-cobalt smelting projects CCR and CCM maintained stable production and operations. The company also carried out exploration in prospective areas and extension-style resource M&A to strengthen the foundation for sustainable development. In the Indonesia nickel segment, Youshan Nickel maintained stable production and operations amid global nickel market price consolidation, achieving operating revenue of 1.663 billion yuan; by improving management, optimizing processes, and strengthening industry-chain synergies, it successfully withstood market shocks. Phase I capacity of the Guizhou project was gradually released, process flows became increasingly mature, and product quality improved steadily; Phase II of the project carried out trial production. Huajin Mining operated steadily, achieving gold sales of 156.31 kg and operating revenue of 145 million yuan. During the reporting period, operating revenue from production and manufacturing was 18.756 billion yuan, accounting for 97.36% of the company’s total revenue, up 2.92 percentage points YoY, and it continued to maintain high-quality operations. Regarding the status of its core businesses, Chengtun Mining’s semi-annual report showed: 1. Energy Metals Business. During the reporting period, the company’s energy metals business achieved revenue of 14.543 billion yuan, with a gross margin of 27.03%, basically in line with the gross margin in the same period last year. In H1 2026, output of copper products was 133,200 mt in metal content, cobalt products 3,700 mt in metal content, and nickel products 21,200 mt in metal content. ( 1) Copper-Cobalt Segment ① During the reporting period, the company’s DRC copper-cobalt segment delivered stable output, with copper production reaching 132,200 mt in metal content, of which Brother Mining achieved 74,400 mt in metal content. The company addressed power shortage issues through a multi-type energy mix, building a modern energy system that is specialized, intensive, and integrated, driving synchronized growth in operating efficiency and scale effects. ② Dali Sanxin actively advanced mine construction and aimed to achieve trial production in Q4. At present, land and other related procedures had been completed, shaft construction was basically completed, and surface civil works construction was being actively advanced. ③ In April 2026, the company disclosed that it planned to acquire a 50% equity interest in Nkoyi Leopard Mining and Investment Limited to indirectly obtain a 30% interest in a large, specific copper-cobalt mining right. The project completed the equity closing in July 2026, and subsequent cooperation matters regarding the mine were progressing normally. During the reporting period, the company actively sought resource security for sustainable development through exploration in prospective areas and by pursuing extension-style M&A and cooperation for copper ore resources. (2) Indonesia Nickel Segment During the reporting period, the global nickel market fluctuated amid the interplay of Indonesia policy adjustments and rising cost side pressures. Youshan Nickel maintained stable production and operations, achieving operating revenue of 1.663 billion yuan and demonstrating strong operating resilience. (3) Deep Processing and Materials Segment ① During the reporting period, Keli Xin’s operating revenue increased by 25.6% from the same period last year, with rapid growth in operating performance. Meanwhile, the company continued to expand its product lines and enrich product models to meet different battery systems’ requirements for high voltage and high safety, effectively improving client response speed and product compatibility. ② Zhonghe Nickel optimized process technologies, further advanced refined on-site production management, improved recovery rates of valuable metals, and enhanced the production system’s adaptability to multi-channel raw material sources. ③ Phase I capacity of the Guizhou project was gradually released, process flows became increasingly mature, and through various refined control measures, it ensured continuous and stable production operations, with product quality improving steadily. Phase II of the Guizhou project smoothly entered trial production. 2. Base Metals Business. During the reporting period, the base metals business achieved sales revenue of 4.213 billion yuan, with a gross margin of 9.50%, up 5.61 percentage points from the same period last year. (1) During the reporting period, Chengtun Zinc & Germanium operated steadily, with notable results in comprehensive recovery; indium and germanium recovery rates both improved. Technical breakthroughs achieved cost reductions in auxiliary material and a record high in silver recovery indicators; multi-dimensional cost reduction and efficiency enhancement significantly lowered logistics and inventory expenses, and overall production operations remained stable. (2) During the reporting period, the company actively advanced the orderly construction of domestic and overseas mines. Construction of the Baoshan Hengyuan Xinmao mining engineering project progressed steadily; Huajin Mining operated steadily, selling 156.31 kg of gold and achieving revenue of 145 million yuan. 3. Metal Trading Business and Others. During the reporting period, the metal trading business achieved operating revenue of 307 million yuan. At present, the scale of the company’s core businesses continued to grow steadily, the proportion of the trading business gradually declined, and the business structure continued to be optimized, achieving solid results on the path of high-quality development. In addition, Chengtun Mining announced on July 23 that the cumulative deviation in the increase of its stock’s closing price exceeded 20% over three consecutive trading days on July 21, July 22, and July 23, 2026, constituting abnormal fluctuations in stock trading. After verification, the company found no media reports or market rumors that needed clarification or response, and found no other material events that could have a significant impact on the company’s share price. As of the date of this announcement, other than information publicly disclosed by the company in designated media, there was no other material information that should have been disclosed but had not been disclosed, including but not limited to planning major asset restructurings involving publicly listed firms, share issuances, major transactions, business restructurings, share repurchases, equity incentives, bankruptcy reorganizations, major business cooperation, introduction of strategic investors, and other major matters. The company’s current operating conditions were normal, and there had been no material changes in the internal and external operating environment. Chengtun Mining announced on July 9 that the transaction in which its wholly owned great-grand subsidiary Preeminence Holdings Limited (Preeminence) acquired a 50% equity interest in Nkoyi Leopard Mining and Investment Limited (Nkoyi) had made new progress. As of the date of this announcement, Nkoyi had completed the change of its shareholder register, and all registration and filing procedures for changes involving directors and senior management in this transaction had been completed. Preeminence had now obtained a 50% equity interest in Nkoyi, and the company had, in accordance with the Share Purchase Agreement under the transaction, paid the equity acquisition consideration to the target company. In Huafu Securities’ nonferrous metals weekly report released on July 26, its commentary on industrial metals mentioned: Industrial metals: tight inventory coupled with geopolitical tailwinds lifted copper prices strongly. From a macro perspective, the Middle East US-Iran geopolitical conflict continued to recur. Multiple parties mediated to advance ceasefire talks, but differences between the two sides were difficult to bridge quickly, and the market continued to trade the potential risk of disrupted shipping through the Strait of Hormuz. Once passage through the waterway is restricted, it would not only push up international crude oil prices and raise global smelting and logistics costs, but also affect outbound shipments of Middle Eastern sulfur, directly disrupting the supply of raw materials for ex-China hydrometallurgical copper production, continuously injecting a geopolitical risk premium into copper prices; repeated changes in news flow also amplified intraday fluctuations in LME copper. This week, tensions in the US-Iran Strait of Hormuz situation remained elevated, and shipping risks in the strait continued to affect market sentiment. Individual stocks: Copper—watch JCC, CMOC, Chengtun, Zangge, JCHX, and Beitong; for H-shares, watch NFC and Minmetals, among others. Aluminum—watch Tianshan, Hongchuang, Yunnan Aluminum, Shenhuo, Huatong, Hongqiao, and Zhongfu, among others. Citigroup recently published a report stating that it held a constructive view on the copper market over the coming weeks, maintaining its expectations unchanged for a 0–3 month short-term copper price target of $14,500 per mt and a year-end target of $15,000 per mt. Citigroup noted that over the past month, despite a pullback in speculative long positions and overall weakness in commodities, copper prices remained resilient. While demand growth remained weak, the supply side faced greater pressure. Global mine supply remained under pressure, while year-to-date scrap supply appeared to respond weakly to high prices. Chilean mine supply risks and sulfur supply constraints could, at the margin, lift market sentiment. A CITIC Securities research report said that multiple positive factors drove copper prices to again challenge $14,000, and that core drivers such as declining inventory and supply disruptions were expected to persist; most potential tariff paths remained positive for copper, and under a neutral assumption, copper prices were expected to challenge $15,000 within the year. The copper sector was still at the beginning of a valuation recovery, and the formation of expectations for price hike and improvements in market sentiment would continue to drive valuation recovery.

On July 29, the China Nonferrous Metals Industry Association (CNIA) held a press conference on the H1 2026 performance of the nonferrous metals industry, both in-person and online. Chen Xuesen, Standing Committee Member of the Party Committee, Vice President and Spokesperson of CNIA, reported on the industry's H1 performance and answered questions from media and enterprise representatives together with relevant department heads. Chen Xuesen stated that the industry's overall operation was stable and improving, with growth in multiple core indicators including production, investment, foreign trade, prices, and profitability. First, production of major varieties grew steadily, while new energy metals diverged. Data from the National Bureau of Statistics (NBS) showed that total production of ten nonferrous metals in H1 reached 41.513 million mt, up 3.3% YoY. Among the 23 nonferrous metal products monitored, production of 13 products increased YoY, while that of 10 products fell YoY. Production and sales of traditional bulk metals were stable with slight gains: copper cathode output was 7.608 million mt (up 5.2%), copper semis 11.982 million mt (up 0.3%), alumina 45.772 million mt (up 3.3%), and primary aluminum 23.187 million mt (up 3.8%). However, upstream mines and downstream processing sectors faced periodic pressure: metal content of six mined metals was 2.955 million mt (down 5.8%) and aluminum semis production was 32.303 million mt (down 2.4%). Industry value-added grew 0.3% in H1, with value-added of the mining and beneficiation sector up 3.2% and that of smelting and processing edging down 0.3%. Production of key new energy metals diverged: silicon metal output was 2.231 million mt (up 2.5% YoY); lithium carbonate capacity release was significant, with production at 563,000 mt (surging 33.9% YoY); refined nickel and refined cobalt output contracted to 221,000 mt and 60,000 mt, down 4.8% and 41.8% YoY respectively. Second, fixed asset investment edged up, with prominent investment vitality in the mining and beneficiation sector. The growth rate of fixed asset investment in the industry narrowed significantly from Q1 in H1. On one hand, project construction progress was constrained by high temperatures and heavy rainfall in some regions; on the other hand, resource constraints became prominent and capacity "involution" intensified, so enterprises had weak willingness for medium and long-term capital expansion domestically and turned more to overseas markets. Overall, the industry's fixed asset investment edged up only 0.4% YoY, down 10.3 percentage points from the Q1 growth rate, with notable sector divergence: investment in nonferrous metals mining and beneficiation rose 21.2%, while investment in smelting and processing declined 4.1%. Private investment was under pressure overall, with industry private investment down 1.0% YoY in H1. By sector, private investment in smelting, rolling and processing fell 3.0%, while that in mine mining and beneficiation grew 8.1%, becoming the main driver of private investment in the industry. Third, foreign trade scale surged significantly, and gold products became the core engine of trade growth. Amid sluggish global economic recovery and intertwined geopolitical turmoil, the industry's foreign trade saw improvements in both volume and quality, with import and export scale expanding substantially. Customs data showed that in H1, total imports and exports of nonferrous metal products reached $347.13 billion, up 68.0% YoY. Specifically, import value was $280.91 billion, up 81.7%, driven mainly by gold products, while export value was $66.22 billion, up 27.3%. The share of gold product imports and exports in the industry's total trade rose to 41.8%, playing a prominent role in boosting overall foreign trade. Bulk raw material imports and exports showed mixed changes. Among them, imports of copper ores and concentrates were 14.61 million mt, down 0.9% YoY, while bauxite imports were 120 million mt, up 17.4%. Imports and exports of copper and aluminum semis showed a pattern of "reduced imports and increased exports." Specifically, imports of unwrought copper and copper semis were 2.49 million mt, down 5.3%, while exports were 879,000 mt, up 18.2%; imports of unwrought aluminum and aluminum semis were 1.88 million mt, down 5.1%, while exports were 3.396 million mt, up 16.3%. In addition, exports of aluminum products (including aluminum alloy wheel hubs) were 2.576 million mt, up 16.4%. Foreign trade in new energy metals continued to gain momentum. Specifically, lithium carbonate imports were 179,000 mt, up 52.3% YoY, silicon metal exports were 379,000 mt, up 11.4%, and unwrought nickel exports contracted sharply to 12,000 mt, down 86.9%. Fourth, market prices consolidated at high levels, with most product prices falling back MoM in June. Affected by overseas resource monopolies and the transmission of geopolitical conflict premiums, major nonferrous metal prices stayed high in H1, but the high prices also forced downstream enterprises to advance material substitution, which to some extent squeezed the industry's demand growth space. In June, market prices saw a phased correction, with 17 of the 24 products monitored by the China Nonferrous Metals Industry Association (CNIA) seeing MoM declines. In terms of H1 average prices, seven products declined YoY, but mainstream products such as copper, aluminum, gold, zinc, tungsten and molybdenum saw price increases. In the domestic spot market in H1, among traditional metals, apart from lead, whose average price was 16,649 yuan/mt, down 1.5% YoY, copper averaged 101,964 yuan/mt, up 31.4%, aluminum averaged 24,124 yuan/mt, up 18.8%, zinc averaged 24,276 yuan/mt, edging up 4.2%, while for precious metals, the average spot gold price was 1,058.4 yuan/g, up 45.9%, and silver averaged 19.7 yuan/g, surging 141.1%. New energy metals showed divergent price changes, with the average price of silicon metal at 9,079 yuan/mt, down 10.7%; battery-grade lithium carbonate at 159,000 yuan/mt, surging 128.1%; nickel at 142,000 yuan/mt, up 12.5%; and cobalt at 417,000 yuan/mt, up 101.5%. Fifth, industry profits increased significantly, with the smelting segment becoming the core pillar of profitability. In H1, the profitability of the industry achieved a leap-forward improvement. The 12,362 enterprises above designated size recorded total operating revenue of 5,769.68 billion yuan, up 21.7% YoY, and total profit of 418.39 billion yuan, up 94.0% YoY. The profit growth accounted for 32.6% of the total profit growth of industrial enterprises above designated size nationwide, boosting the total profit growth of national designated industrial enterprises by 6.1 percentage points, ranking among the top in the industrial sector in terms of profit growth rate. Meanwhile, cost control showed positive results, with the cost per hundred yuan of operating revenue for the above-designated-size enterprises at 90.0 yuan, down 2.7 yuan YoY. The sharp profit increase was driven by multiple favorable factors resonating together: First, tight ore supply and rising scarcity premiums pushed profits toward upstream mines. Second, emerging industries such as AI computing infrastructure, power batteries, energy storage, and NEVs continued to release rigid demand, strongly supporting non-ferrous metal product prices and market demand. Third, geopolitical conflicts periodically pushed up aluminum and sulphuric acid prices, generating phased profit gains; combined with the low price base in H1 2025, these factors jointly drove a sharp YoY increase in profits this year. The profit structure of the industry chain showed a pattern of smelting leading, mining following, and processing being relatively weak. The contribution rates of the mining, smelting, and processing segments to industry profit growth were 23.6%, 65.5%, and 11.0%, respectively, boosting industry profit growth by 22.1, 61.6, and 10.3 percentage points. The profitability difference across the industry chain was significant, with operating profit margins for mining, smelting, and processing standing at 40.6%, 8.9%, and 2.0%, respectively, up 10.3, 3.4, and 0.7 percentage points YoY. The profit increase in the smelting segment was 132.74 billion yuan, accounting for 65.5% of the industry’s profit growth. Aluminum smelting and gold smelting contributed 56.7% and 17.3% of the profit increase in the smelting segment, making them the main drivers of profit growth in the segment. By product, the aluminum sector had the most prominent boosting effect, with a profit growth contribution rate of 43.5%. Dividends from supply-side structural reform in aluminum continued to be released, and global supply tightened due to geopolitical disruptions, pushing aluminum prices persistently higher. The contribution rates of gold, copper, and tungsten & molybdenum were 13.0%, 13.6%, and 9.0%, respectively. Together, these four categories contributed 79% of the industry’s profit growth, becoming the main force behind the profit rise. Profits in only two categories, antimony and silicon metal, were under pressure, while all other metal types achieved positive revenue increases. Chen Xuesen pointed out that since this year, the industry has demonstrated strong development resilience under the dual tests of external risk shocks and internal structural constraints. H1 operations presented three features: support from emerging industry demand, synchronized improvement in industry volume, price, and profit, diversified expansion of overseas resource deployment and continuous improvement of international resource guarantee systems, and prominent domestic resource supply constraints, with primary ores and recycled resources synergistically shoring up weaknesses. Taking all factors into account, the China Nonferrous Metals Industry Association (CNIA) makes the following projections for the industry's 2026 trajectory: H2 nonferrous industry value-added growth rate is expected to be higher than H1, with a full-year industry value-added growth rate of 2%~3%; production of ten nonferrous metals for the full year is up about 3% YoY; major nonferrous metal prices will swing wildly at highs, with geopolitical situations, downstream demand, and overseas supply being the core variables driving price fluctuations; total import and export value will maintain growth for the full year, with import growth being higher, driven by high-price resource procurement and safe-haven demand; exports of copper and aluminum semis and products possess stable resilience, continuing to provide support for stable foreign trade exports; full-year industry operating revenue and total profit remain up YoY, but revenue and profit growth rates will pull back in H2, with the growth rates showing a pattern of stronger first half and weaker second half; the profit allocation pattern remains unchanged, profit advantage at the resource end remains solid, and except for aluminum smelting, the room for profit improvement in other types of smelting and processing is relatively limited. Chen Xuesen stated that in the next step, the industry will closely follow the deployment and requirements of the CPC Central Committee and the State Council, focusing on three core tasks: strengthening the resource security baseline, expanding the recycled resource circular industry, accelerating the green and low-carbon transition and proactively addressing international green trade barriers, and cultivating new development momentum and activating enterprise innovation vitality. Multiple measures will be taken to solidify the foundations of the industry chain and supply chain, promoting both quality and efficiency improvements. (China Nonferrous Metals News)

MMG Limited, a subsidiary controlled by state-owned China Minmetals Corp., has completed the $1.875 billion acquisition of the Khoemacau copper mine in Botswana. Situated in the Kalahari Copper Belt, the asset features copper reserves exceeding 6 million metric tons and mining rights spanning over 4,000 square kilometers. The project marks the largest overseas copper mine acquisition by a Chinese company since 2018 and stands as the single largest investment by a Chinese enterprise in Botswana to date. First commissioned in June 2021, Khoemacau currently targets an annual production baseline of 60,000 tons of copper and 1.6 million ounces of silver in concentrate, with near-term expansion plans positioned to scale output toward 130,000–155,000 tons of copper annually. China currently maintains a domestic copper resource dependency rate exceeding 70%, importing over 60% of its copper ore from Chile and Peru. This strategic transaction diversifies Chinese supply channels beyond South America, bolstering raw material security amidst accelerating demand driven by global decarbonization, electric vehicles, power grid infrastructure, and emerging clean technologies.

Global primary copper supply is projected to face a 25% deficit by 2035 under current policy settings despite record-high prices, as new project development fails to keep pace with demand, according to a report by the International Energy Agency (IEA). The IEA highlighted declining ore grades as a core structural headwind, noting that average copper ore grades worldwide have dropped by 40% since 1991. This depletion has significantly increased project complexity and capital expenditure. Capital intensity for brownfield expansions has escalated by 65% since 2020, approaching levels historically associated with new greenfield developments. Concurrently, greenfield discoveries have slowed dramatically, with only 5% of all copper deposits identified over the past 35 years discovered within the last decade. In the near term, project delays, cost overruns, and mine disruptions continue to tighten the copper concentrate market. Furthermore, limited availability of sulfuric acid has emerged as a key operational risk for solvent extraction-electrowinning (SX-EW) cathode production, compounding immediate supply constraints across global operations.

[SMM Analysis: High Imports Yet Lower TCs: Why China’s Copper Concentrate Market Is Getting Tighter amid Rising Purchases] In H1 2026, China’s copper concentrate imports stayed high but edged down YoY, with the pace of imports slowing noticeably in Q2 compared with Q1. At the same time, new and expanded smelting capacity continued to come onstream, and growth in copper concentrate demand outpaced the increase in import supply, driving spot TCs further down. On July 24, the SMM Imported Copper Concentrate Index (weekly) fell to -$154.76/dmt, further highlighting the contradiction of high imports coexisting with deeply negative TCs. Looking ahead to H2, stockpiling, feeding, and production ramp-up at three new smelting projects in China will add to rigid procurement demand. Higher production from Oyu Tolgoi, a seasonal recovery in South American mine output, and shipments of some stockpiled ore are expected to support a QoQ increase in China’s copper concentrate imports. However, the resumption of production at Grasberg will still take time, and local smelting capacity in Indonesia and Africa continues to absorb domestically produced concentrates, meaning that increases in overseas mine production may not proportionally translate into accessible supply for China. China’s copper concentrate imports are expected to remain high in H2 and rebound somewhat from H1, but the global supply-demand “hard deficit” for copper concentrates is unlikely to ease in the short term, and freely tradable, suitable supply will stay tight. In the absence of large-scale, sustained production cuts on the smelting side, spot TCs are more likely to show an L-shaped pattern of low-level operation with intermittent rebounds, and the configuration of rising imports alongside negative TCs will persist.