All production processes at the third-phase concentrator of Wushan Copper Mine, a subsidiary of Jiangxi Copper Corporation, have been largely streamlined, achieving key progress in system construction and trial production. As of the end of January this year, core production processes at the concentrator, including grinding, flotation, and copper concentrate filtration, have been fully connected, with copper concentrate successfully delivered to the warehouse.

On June 13, at the 2025 SMM (13th) Minor Metal Industry Conference - Rare and Scattered Metals Forum (Indium, Germanium, Gallium, Bismuth, Selenium, Tellurium), hosted by Shandong Humon Smelting Co., Ltd. and SMM Information & Technology Co., Ltd., Long Wensheng, General Manager of Changsha Aochang Nonferrous Metals Co., Ltd., elaborated on "The Current Application Status and Future Prospects of Minor Metal Selenium.

According to JCC Construction News: Recently, the 50,000 mt secondary copper smelting project in Shandong Jinxin, undertaken by Jiangxi Copper Corporation (Guixi) Metallurgical Chemical Engineering Co., Ltd., achieved a significant milestone—the nation's first horizontal-swing refining furnace for copper anode production successfully yielded its first batch of anode plates. This innovative achievement, characterized by its "high efficiency, intelligence, and environmental protection" process features, has set a new benchmark for the industry. As a complete process output equipment for device manufacturing and production services, the project accomplished a full-process system upgrade: from the dismantling of the old reverberatory furnace and civil construction to furnace body manufacturing and installation, customized refractory material laying; from secondary combustion chamber integration to intelligent control system debugging, and finally to the revamping and upgrading of the wheel casting machine, along with the full integration of pyrometallurgical equipment and processes. The metallurgical chemical engineering team overcame multiple technical challenges to successfully develop this groundbreaking new refining furnace with industry-leading significance. It is reported that the horizontal-swing furnace is a refining furnace featuring a hydraulic tilting structure, particularly suitable for blister copper refining, effectively removing impurities to produce high-quality copper anode plates. Its most distinctive feature lies in the adjustable head-tail swing system, breaking through the traditional fixed-angle mode to achieve flexible adjustment of slag outlet and discharge port positions, significantly enhancing operational adaptability. Compared to conventional fixed anode furnaces, the horizontal-swing furnace demonstrates notable advantages in energy consumption, operation, and environmental protection. High Efficiency and Energy Saving, Outstanding Capacity The horizontal-swing furnace adopts a multi-zone, multi-point heating design with high thermal efficiency, fast charging and melting speed, and significantly improved slagging efficiency. By precisely controlling the position and depth of the tuyeres, stirring effectiveness is enhanced, operational dead zones are reduced, and the contact between flux and metal becomes more thorough, greatly improving smelting efficiency. The casting process, regulated by furnace body swinging, ensures smooth slag discharge and precise control, resulting in high casting qualification rates, low rejection rates, and stable, reliable product quality. Meanwhile, the coordinated heating of primary and auxiliary fuels ensures full combustion and uniform heat distribution. The single-furnace operation time is short, furnace door opening/closing frequency is low, heat loss is minimal, and energy consumption is significantly lower than similar equipment. The furnace lining refractory material experiences less wear, extending furnace lifespan and delivering considerable economic benefits to enterprises. Intelligent Control, User-Friendly Operation The horizontal-swing furnace provides a solid foundation for mechanization and automation. Through its intelligent control system, it achieves automated and even intelligent management of operational processes. The swinging design simplifies critical operations such as slag tapping and oxidation-reduction, making them safer and significantly reducing labour intensity, operational risks, and improving manual work efficiency. The side-inclined tuyere design also effectively reduces tuyere wear. Green and Environmentally Friendly, Safe and Reliable The horizontal-swing furnace exhibits strong sealing during operation, with minimal furnace gas and dust leakage, low-level pollution in the working area, and overall environmental friendliness. The flue system is equipped with replaceable ash and slag hoppers to prevent blockages, ensure smooth flue gas emission, and improve the working environment. In addition, the frequency of furnace door openings is reduced, further minimizing heat loss and pollutant emissions, thus comprehensively meeting the development needs of green metallurgy. In summary, the swing furnace integrates high efficiency, energy conservation, environmental protection, and intelligence, representing the direction of technological innovation in copper smelting equipment. Its unique design philosophy, combined with years of practical experience, demonstrates significant advantages in energy conservation, emission reduction, quality improvement, and efficiency enhancement, providing strong support for the upgrading of furnace types in the metallurgical industry. In the future, the swing furnace is expected to be promoted and applied in a wider range of fields, helping China's metallurgical industry move towards a new era of high-quality development.

Recently, the 50,000 mt secondary copper smelting project in Shandong Jinxin, undertaken by Jiangxi Copper Corporation (Guixi) Metallurgical and Chemical Engineering Co., Ltd., achieved a significant milestone—the nation's first horizontal swing refining furnace for copper anode production successfully yielded its first batch of anode plates. This innovative achievement, characterized by its "efficient, intelligent, and environmentally protective" process, has set a new benchmark for the industry. As a comprehensive process output equipment for device manufacturing and production services, the project accomplished a full-process system upgrade: from dismantling the old reverberatory furnace and civil construction to furnace body fabrication, installation, and customized refractory material laying; from secondary combustion chamber integration and intelligent control system debugging to the final upgrade of the disc casting machine and seamless integration of the full set of pyrometallurgical equipment and processes. The metallurgical and chemical engineering team overcame numerous challenges to successfully develop this groundbreaking refining furnace with industry-leading significance.

》Check SMM metal quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo On May 14, 2025: As of April 30, 2025, all companies have disclosed their 2024 annual reports. According to SMM statistics, a total of 19 publicly listed firms operate copper smelters. These 19 publicly listed firms are: Tongling Nonferrous Metals Group (000630), Jiangxi Copper Corporation (600362), Jinchuan Group International Resources Co., Ltd. (02362.hk), Daye Nonferrous Metals Group (00661.hk), Yunnan Copper (000878), Zijin Mining (601899), Yuguang Gold and Lead Group (600531), Western Mining Co., Ltd. (601168), Yunnan Tin Co., Ltd. (000960), Shandong Humon Smelting (002237), Zhongjin Gold (600489), Baiyin Nonferrous Group Co., Ltd. (601212), Ningbo Jintian Copper (601609), Huludao Zinc Industry Co., Ltd. (000751), North Copper (000737), Zhejiang Chifoo Holding Group Co., Ltd. (002266), Guangdong Feinan Resources Co., Ltd. (301500), Beijing GEEN Environment Engineering Co., Ltd. (603588), and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060). 2024 Production and 2025 Production Plans for Copper Cathode at Each Smelter According to annual report disclosures and SMM's understanding, the total copper cathode production of the aforementioned 19 copper smelters in 2024 was 10.5558 million mt, with an increase of 642,000 mt, up 6.5% YoY. Data from the National Bureau of Statistics (NBS) shows that the national production in 2024 was 13.644 million mt, with these 19 enterprises accounting for 77.37% of China's total copper cathode production. This figure increased by 1.04% compared to the same period last year. We expect that with the release of new capacity, industry concentration will increase again in the future. Regarding the specific situations of each smelter: Only 4 out of the 19 smelters experienced production cuts. Among them, Yunnan Copper had the largest decline, with a significant drop in production due to the relocation of its headquarters smelter. The largest increase was seen at Jiangxi Copper, with an annual copper cathode production of 2.2919 million mt, up 194,600 mt or 9.3% YoY in 2024, continuing to lead the copper industry. This was followed by North Copper, with a production increase of 178,800 mt compared to 2023, reaching 31.32 mt. Then came Jinchuan Group, with a production of 1.3272 million mt, an increase of 158,100 mt compared to 2023. In addition, based on their 2025 production plans, the total production in 2025 is expected to be 11.4028 million mt, an increase of 847,000 mt or 8%. According to SMM statistics, the new production from domestic smelters from January to May 2025 has already reached 536,400 mt, and it is highly probable that the annual increase of 847,000 mt will be achieved. In 2025, two smelters are expected to increase their production by more than 200,000 mt. Among them, the largest increase is expected to be from Yunnan Copper, with an increase of 254,000 mt, mainly due to the resumption of production after the relocation of the smelter and the commissioning of new smelters. Next is Jinchuan Group, which is expected to increase its production by 252,800 mt, thanks to the commissioning of a new smelter. In addition, due to the tight supply of copper concentrates, six smelters are expected to implement production cuts in 2025, two more than last year. Overall, although copper concentrate TCs hit a record low this year, it has not hindered the expansion pace of copper smelters.

On April 22, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo - Copper Industry Innovation Forum, co-hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Land Port Holding Co., Ltd. as the main sponsors, Shandong Humon Smelting Co., Ltd. as the special co-sponsor, and Xinhuang Group and Zhongtiaoshan Nonferrous Metals Group Co., Ltd. as co-sponsors , , Weng Zhantu, head of the Marketing and Product Department of the Derivatives Division of Jinrui Futures Co., Ltd., shared insights on how over-the-counter derivatives can promote high-quality development in the copper industry. Overview of Over-the-Counter Derivatives Business Growth in Notional Principal of Over-the-Counter Derivatives Business of Risk Management Subsidiaries Over-the-Counter Derivatives Business in the Nonferrous Metals Sector (Market Share) (Data Source: China Futures Market Monitoring Center) Development of Copper On-Exchange Futures and Options In 2024, the daily average open interest of SHFE copper futures was 389,900 lots, with a cumulative trading volume of 50.8647 million lots; the daily average open interest of SHFE copper options was 58,000 lots, with a cumulative trading volume of 23.2471 million lots. Enhancing Industry Risk Management Capabilities Enhancing Industry Risk Management Capabilities - Buy Insurance Strategy (Buying Options) • Enterprise Demand: On March 29, 2024, after a copper processing enterprise priced its raw material procurement, downstream customers did not fix the price due to rising prices, resulting in an unhedged exposure of 1,000 mt. According to the company's policy, strict hedging was required, but the enterprise believed that the market was likely to continue rising. They sought a better way to comply with the strict hedging policy while still benefiting from the rise in copper prices. • Traditional Operation: Hedging with a short futures position on the 05 contract at 72,500, requiring an initial futures margin of 6.525 million yuan. • Hedging Optimization: Purchasing 1,000 mt of at-the-money put options on CU2405 from Jinrui Capital, with an entry price of 72,500, a strike price of 72,500, and an expiration date of April 30, paying a total premium of 1.015 million yuan. • Option Strategy - Buy Insurance (Buying Options) On March 29, 2024: The enterprise purchased 1,000 mt of at-the-money put options on CU2405 from Jinrui Capital, with an entry price of 72,500, a strike price of 72,500, and an expiration date of April 30. The initial premium paid was 1,015 yuan/mt, with a premium rate of approximately 1.40%, totaling 1.015 million yuan initially. April 30, 2024: The closing price of CU2405 was 82,340 yuan/mt, with the options not exercised. The loss at expiration was equal to the initial premium of 1,015 yuan/mt. In a sharply rising market, buying put options for short hedging means that, on one hand, after paying an initial 1.015 million yuan, there is no need for additional margin calls; on the other hand, the inventory at expiration is sold at 82,340 yuan/mt. Combining futures and spot, the enterprise's earnings increase by 8,825 yuan/mt, totaling 8.825 million yuan, effectively capturing the benefits of rising spot prices. • Advantages of buying OTC options: Compared with futures hedging, it can avoid margin calls in a volatile market and effectively capture the benefits of rising spot prices. Compared with exchange-traded options, it allows for flexible selection of strike prices and expiration dates. Enhancing Industrial Risk Management Capabilities - Income-Enhancing Strategies (Selling Options) • Enterprise Needs: On November 26, 2024, copper prices were quoted at around 74,300 yuan. A wire and cable enterprise, based on its business plan and market expectations, planned to establish a raw material inventory reserve. It intended to purchase 1,000 mt at a copper price of around 73,000 yuan and 2,000 mt at around 72,000 yuan through fixed-price procurement. • Traditional Operations: The enterprise placed daily orders for 1,000 mt of long positions in 73,000 futures on the futures market, waiting for execution. ► Option Strategy - Income Enhancement (Selling Options) November 26, 2024: The cable enterprise chose to sell 1,000 mt of out-of-the-money put options with CU2501 as the underlying asset, with an entry price of 74,000, a strike price of 73,000, an expiration date of December 25, a premium of 600 yuan/mt, and a margin of 4,012 yuan/mt, totaling an initial 4.012 million yuan. December 25, 2024: The closing price of CU2501 was 74,140 yuan/mt, with the options not exercised. The enterprise received a premium of 600 yuan/mt at expiration, totaling 600,000 yuan. Upon the expiration of the options, as CU2501 never fell below 73,000 during the period, the enterprise did not purchase additional inventory but still achieved an income increase of 600,000 yuan through selling the options. • Summary of Scenarios for Selling Options: The enterprise has a clear strategic inventory purchase price (or strategic hedging selling price); within the scope of risk appetite, as long as the market logic remains unchanged, continuous rolling operations can be conducted. ► Summary of Characteristics of OTC Options and Exchange-Traded Options: Enhancing Industrial Risk Management Capabilities - Accumulation Structures It lists relevant cases and summarizes the advantages of knock-out enhanced accumulation options: the opportunity to obtain a better position-building price than the entry price; if the price is volatile enough to trigger a knock-out and terminate the option, although the enterprise can no longer continue to acquire long positions at a lower price, it will receive a one-time position for the remaining tonnage at the entry price, which is at least the same as the cost of direct futures position-building and meets the initial hedging quantity. International Development of the Service Industry International Development of the Service Industry - Exporter's Overseas Market Hedging Strategy It lists and summarizes relevant cases of the international development of the service industry - exporter's overseas market hedging strategy. Overseas Commodity Return Swaps: Products linked to commodity futures in overseas markets are traded and settled in RMB domestically. Business Advantages: More convenient settlement in RMB, improving transaction efficiency; Trading Varieties: LME metals, COMEX copper and precious metals, SGX iron ore, ICE cotton, and energy products, etc.; Note: Specific varieties, transaction limits, etc., are subject to actual inquiries. In addition, it also lists and summarizes relevant cases of the international development of the service industry - importer's price ratio locking strategy. Discussion on Optimizing Industrial Financing Models The integration of warrant service business and OTC derivatives business of risk management subsidiaries can provide industrial clients with richer spot financing models. For example: To meet the financing needs of industrial clients for spot purchases, risk management subsidiaries can provide zero-interest warrant service business. 》Click to view the special report on the 20th CCIE-2025SMM Copper Industry Conference & Copper Industry Expo