On April 23, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo - Main Forum, 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 main sponsors, and Shandong Humon Smelting Co., Ltd. as a special co-organizer, Xinhuang Group and Zhongtiao Mountain Nonferrous Metals Group Co., Ltd. as co-organizers, Wang Jianlong, Deputy Director of Metallurgy Department One of China ENFI Engineering & Technology Co., Ltd., shared insights on the global copper smelting landscape and intelligent development. Ben Knoefler, Chairman of the Board of KCI Group, analyzed the global copper market for 2025. 1 Global Copper Resource Distribution Overall, the world's copper resources are relatively abundant, with an estimated 31 billion tons of land-based copper resources and 7 billion tons in deep-sea nodules. Natural copper minerals include native copper, oxides, and sulfides. The world's proven copper reserves are about 10 billion tons, and based on current mine production, the static assurance period for mining is approximately 45 years. In terms of regional distribution, the main areas with concentrated copper ore resources globally are: (1) The western foothills of the Andes in Peru and Chile, South America; (2) The Cordillera region in the western part of the North American continent, mainly in the US and Mexico; (3) Central Africa, particularly in the DRC and Zambia; (4) Central Asia, mainly Kazakhstan, Mongolia, and Russia; (5) Australia. The top five countries in terms of copper ore reserves are Chile, Peru, Australia, Russia, and the DRC, accounting for about 57% of the total. 2 Global Refined Copper Consumption Global copper consumption is mainly concentrated in two types of countries or regions. One type is traditional developed Western countries, where copper consumption is relatively stable. The other type is developing countries and regions experiencing rapid economic growth, which have higher copper consumption growth rates and are key factors in global copper consumption growth. According to ICSG statistics, global refined copper consumption in 2024 was 28.577 million mt, up 5.79% YoY. The growth in global refined copper consumption is mainly supported by strong apparent demand in China. The main areas of global copper consumption are power grids, construction, consumer goods, transportation, and engineering machinery, accounting for 28%, 27%, 22%, 12%, and 11% respectively. As a basic raw material, changes in copper consumption are closely related to global economic development. In recent years, consumption of copper plate/sheet and strip in traditional fields and copper foil for circuit boards has been relatively weak, while copper use in the power and new energy sectors has performed well. 3 Global Refined Copper Production and Capacity Distribution Global refined copper production in 2024 was 28.0228 million mt, up 4.07% YoY. The increase in refined copper production is mainly due to capacity expansion in China and the DRC, while production in other regions decreased by about 1%. As the largest consumer and producer of refined copper, China does not have a significant advantage in copper ore resources and needs to import large amounts of copper concentrates. China's refined copper production and copper concentrate imports In 2024, China's refined copper production was 13.644 million mt, and copper concentrate imports were 28.11 million mt. To address the current state of the copper smelting industry, relevant national departments are promoting the healthy and orderly development of the copper smelting industry through industrial policies, environmental protection policies, and other measures. In general, on the supply side, efforts are being made to deepen supply-side structural reforms, strictly control the disorderly expansion of copper smelting capacity, and accelerate intelligent and green transformation. On the demand side, enterprises are being guided to accelerate technological progress, overcome the shortcomings of copper-based new materials, and fully tap the potential applications of copper in new infrastructure and construction projects. Major Chinese Copper Smelters According to incomplete statistics, there are more than 40 copper smelters (production lines) nationwide, with four groups having a capacity of over 1 million mt/a. 4 Global Copper Smelting Processes and Their Development Copper Smelting Processes Pyrometallurgy (80%): Impurities are removed as slag at high temperatures, resulting in copper anode, which is then electrolyzed to produce refined copper. Traditional matte smelting, the main process for copper smelting, is suitable for sulfide ores. One-step copper smelting, with limited industrial application, is suitable for sulfide ores under special raw material conditions. Hydrometallurgy (20%): Copper is enriched in solution through leaching and extraction processes, followed by electrodeposition to produce refined copper. • Leach-extraction-electrodeposition, suitable for oxide ores, especially for large-scale processing of low-grade oxide ores. • Roast-leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. • Oxygen pressure leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. Copper Pyrometallurgical Process Flow It also elaborated on the hydrometallurgical process flow of copper, including roasting, leaching, extraction, and electrodeposition. Several Main Matte Smelting Processes and Their Development ► Flash Smelting: Flash smelting technology includes Outokumpu flash smelting and INCO flash smelting, with Outokumpu technology being widely applied. China began introducing flash smelting technology in the 1980s. Xiangguang Copper innovated boldly based on flash smelting technology, inventing the vortex flash smelting technology, which received a national invention patent. Advantages include high capacity, high automation, and longer furnace life; disadvantages include high investment, complex feed preparation system, poor adaptability to high-impurity raw materials, and the need to reduce costs through scale effects. Recent developments include: high oxygen (even pure oxygen) smelting, further expansion of single-furnace capacity (500,000 mt/a), continuous innovation and improvement of process equipment, and gradual localization. ► Top-Blown Smelting: Top-blown smelting technology, including Ausmelt smelting and ISA smelting, was introduced to China in the 1990s. Characteristics of top-blown smelting technology include using a submerged lance to blow air and oxygen into the melt pool, providing strong stirring and good reaction kinetics, and high production efficiency. Disadvantages include the need to add fuel, inability to separate slag and copper in the furnace, requiring a settling electric furnace, high comprehensive energy consumption, low utilization of oxygen and fuel, and short furnace life. Recent developments include: increasing oxygen concentration, improving matte grade, raising smelting temperature, and continuously extending lance and furnace life. ► Bottom-Blown Smelting: Bottom-blown smelting is a new copper smelting technology with independent intellectual property rights from China ENFI. It was first industrially applied in Vietnam in 2002, and the first bottom-blown copper smelting production line in China was put into operation in 2008. Advantages include simple feed preparation, low furnace investment, high oxygen utilization, and strong adaptability to raw materials, capable of handling high-impurity raw materials. Disadvantages include high copper content in slag and low direct recovery rate. Developments include: further expansion of single-furnace processing capacity (1.8 million mt/a of concentrate); as a representative technology for matte gold capture, it has low requirements for copper content in concentrate and has been applied in complex gold concentrate processing at Shandong Humon, Central China Gold, and Guotou Jincheng. Zhongjin Lingnan Copper Co., Ltd. (formerly Dongying Fangyuan) developed the "Zhongjin Method" for two-step copper smelting based on bottom-blown smelting. China ENFI and Baotou Huading Copper Industry developed the full bottom-blow three-furnace process based on bottom-blown smelting and continuous bottom-blowing. ► Side-Blown Smelting: Based on Vanyukov smelting technology, China developed and applied oxygen-enriched double side-blowing smelting technology in 2009, which has rapidly developed in recent years. Characteristics of side-blown smelting technology include blowing air and oxygen into the melt pool through tuyeres on both sides of the furnace, improving mass and heat transfer conditions, with low blowing pressure, low copper content in slag, and relatively simple operation. Disadvantages include the need for manual opening and plugging of tuyeres and the need to add coal (mainly to inhibit magnetic iron in slag). Recent developments: Rapidly achieved a leap from 100,000 mt capacity to 400,000 mt capacity, with the maximum bed area reaching 70 square meters. ► P-S Converter Blowing: P-S converter blowing, invented in 1905, has been used for over a century and remains the primary copper matte blowing technology worldwide. Advantages include flexible operation and the ability to balance various cold copper-containing materials and externally purchased cold copper using reaction heat. Disadvantages include periodic intermittent operation, large fluctuations in flue gas volume and sulfur content, which are unfavorable for acid-making systems, large flue gas collection volumes, and difficult-to-solve low-altitude SO2 pollution caused by ladle lifting. The drawbacks of P-S converters have prompted metallurgists to seek continuous blowing technologies. ► Flash Blowing: The world's first flash blowing furnace was commissioned at Kennecott Utah Copper in 1995, forming the "double flash" process when paired with flash smelting. Xiangguang Copper was the first in China to introduce "double flash" technology, and the first flash blowing furnace in China was put into operation in 2007. After years of improvement, it developed into vortex flash blowing technology. Currently, there are six flash blowing furnaces in operation in China, five of which are paired with flash smelting, each with a capacity of over 400,000 mt/a, and one paired with bottom-blown smelting, with a capacity of 300,000-400,000 mt/a. Advantages include easy measurement of solid matte, high automation, and high operating rate. Disadvantages include the need for additional grinding equipment for matte and limitations in handling cold materials like anode stubs due to furnace structure and thermal balance. The maximum single-unit designed capacity has reached 500,000 mt/a. Additionally, it provided a detailed introduction to the processes and developments of bottom-blowing and multi-lance top-blowing. 5 Trends in the Copper Smelting Industry Main factors and trends driving global copper smelting development It also reviewed the development policies of China's copper smelting industry and shared interpretations of the main contents of the High-Quality Development Plan for the Copper Industry (2025-2027). 6 Intelligent Development in the Copper Smelting Industry Background of intelligent transformation and upgrading Policy promotion for intelligent transformation and upgrading In March 2021, the State-owned Assets Supervision and Administration Commission (SASAC) issued the Notice on Accelerating the Digital Transformation of State-Owned Enterprises. In November 2021, the MIIT issued the 14th Five-Year Plan for Deep Integration of Informatization and Industrialization. In April 2020, the MIIT, NDRC, and Ministry of Natural Resources jointly released the Guidelines for the Construction of Smart Factories (Mines) in the Nonferrous Metals Industry (Trial). Among these, the Guidelines for the Construction of Smart Smelting Factories in the Nonferrous Metals Industry, led by China ENFI, provide a top-level design for the intelligent development of the nonferrous metal smelting industry. Overall implementation plan for smart factories Expected effects of smart factory implementation It discussed in detail aspects such as organizational management model reconstruction, innovative digital transformation panoramic view, data assetization, and improvement of technical and economic indicators. For more information, click to view the special report on the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo.

【Will Rio Tinto's Main Product PB Face a Grade Reduction?】Recent market rumors indicate that the quality of Rio Tinto's flagship product PB (including PB fines and PB lumps) has declined by at least one grade. Specifically, the iron grade of PB fines has dropped from the typical value of 61.6% to 60.8%, and the iron grade of PB lumps has also decreased from the typical value of 62.2% to 61.6%. According to the online rumors, the iron grades of PB fines and lumps will be implemented in H2 2025. Based on the quality changes, there are also market rumors about the pricing model for the "new PB mixed ore product," which is said to be set as "Platts 62% index + discount." Additionally, Rio Tinto's mine will conduct price discovery monthly by selling spot cargo in US dollars and determine the discount. It is rumored that the adjusted PB products will almost certainly be priced at a reduced rate.

With the drums of war urging progress and the decisive battle for victory, MCC Huludao Nonferrous Metals Group Co., Ltd. (hereinafter referred to as "Huludao Nonferrous") has anchored its annual targets and tasks in the final year of the 14th Five-Year Plan and the decisive year of the three-year action plan. The company has been racing against time, intensifying efforts, and working together to overcome challenges. From January to March, the company achieved a YoY increase of 3.18% in the production of nonferrous products, a YoY increase of 10.98% in the total volume of chemical products, and a YoY increase of 30.79% in industrial output value, delivering an outstanding first-quarter performance. Facing a still severe market situation, Huludao Nonferrous, while strictly adhering to safety red lines and environmental protection bottom lines, follows market laws and seizes opportunities based on actual user needs. The company focuses on "increasing production, improving quality, and enhancing efficiency, while reducing costs, consumption, and losses" to tap internal potential and refine operations. The business system, production system, and various functional departments work closely together, scientifically analyzing market trends and industry development, optimizing the supply, production, and sales structure, and strengthening the coordination and guarantee of production factors. The entire workforce works in unison to overcome unfavorable factors, fully leveraging the complementary advantages of processes, improving the processing capacity of mixed ores and materials, and maintaining a good momentum of continuous and stable production. All smelting systems at Huludao Nonferrous are operating at full capacity, striving for excellence with precise control and meticulous implementation. The sulfuric acid plant has made every effort to overcome the practical difficulties caused by severe winter weather in unloading and batching, ensuring that incoming ore is unloaded immediately upon arrival. Large quantities of frozen ore are crushed, and the composition of incoming ore and intermediate materials is carefully calculated to determine the optimal ratio, strictly adhering to batching process requirements. In response to changes in raw material structure and market demand, the electrolytic zinc plant and refined zinc plant have accelerated production rhythms while firmly maintaining a balance between product quality and comprehensive benefits. Process control has been optimized, and impurity removal and system cleaning have been strengthened, providing strong support for subsequent processes. In the zinc product process, each electric furnace is dedicated to producing "customized" products for each user, with operators meticulously adjusting furnace temperatures and times, making great efforts to improve direct production rates, recovery rates, and first-pass inspection qualification rates. In the rectification process, employees maintain rectification towers to extend their operational lifespan, with daily furnace production remaining high, continuously consolidating the "Hu Zinc" brand advantage and meeting the needs of users, especially those of high-end products. In the copper system, from the oxygen furnace to the continuous blowing furnace and anode furnace, all are operating at high load and high efficiency. Operators monitor the operational status of each process, focus on key links, and pay attention to every detail, ensuring that the copper system runs more smoothly after process reengineering and that production potential is fully realized. As the production of the oxygen furnace and continuous blowing furnace continues to increase, the operations of copper and slag tapping by operators have also increased accordingly. Employees diligently execute production instructions to ensure the smooth output of each batch of blister copper and even copper anode. With sufficient raw material supply, the electrolytic copper system works against the clock, crafting with precision, maximizing effective time, stabilizing process operations, and producing high-quality copper cathode. The comprehensive utilization plant processes and recovers materials based on their variety and grade. According to the smelting cycle, the production of each furnace is reasonably arranged, and the enrichment of valuable metals is strengthened to create conditions for refining, ensuring stable and high-quality production of small-volume metals such as gold and silver, effectively locking in comprehensive benefits.

》View SMM Metal Quotes, Data, and Market Analysis 》Order and View SMM Metal Spot Historical Price Trends On March 28, the SMM Imported Copper Concentrate Index (weekly) reported -$24.14/dmt, a decrease of $1.26/dmt from the previous period's -$22.88/dmt. The pricing coefficient for domestic trade ore with a 20% grade was 93%-95%. Recently, procurement activities have been dominated by large smelters, while the purchase willingness of small and medium-sized smelters has significantly decreased. During the week, some traders offered mixed ore in 7-8 thousand mt containers with a loading period in May, quoted at a high TC of -$20. Some traders offered clean ore of 10,000 mt, quoted at a mid TC of -$30, with a loading period in May. Some traders sold 10,000 mt of mixed ore + high gold ore to smelters at a high TC of -$20, with a QP of M+1 and a loading period in May/June. A large smelter sold 20,000 mt of clean ore to smelters at a mid TC of -$20, with a loading period in May/June and a QP of M+1. Additionally, the tender results for Serro Gorda to traders were released, with 10,000 mt for a loading period in May and a QP of M+2, winning bid price at a low TC of -$50, and 10,000 mt for a loading period in H2 and a QP of M+4, winning bid price at a low TC of -$50. According to SMM, with the change in the futures market structure, the QP for traders' transactions has now contracted from M+5 to M+1. Glencore suspended copper production at its Altonorte smelter in Chile due to issues with the smelting furnace, invoking the force majeure clause in commercial contracts. The force majeure clause allows suppliers to halt shipments due to uncontrollable circumstances. However, according to SMM, Glencore's Altonorte smelter in Chile required new furnace bricks after the last major power outage in Chile, with maintenance lasting about one month, and the smelting process has been halted for at least two weeks so far. Recently, there were rumors of a shutdown at SPCC's Ilo smelter in Peru, but according to SMM, the Ilo smelter resumed production on the morning of March 26, with a total shutdown of one day, likely due to issues with the smelting furnace. Additionally, Adani is expected to start feeding material for the smelting process next week. On March 28, SMM's nine-port copper concentrate inventory was 792,500 mt, an increase of 149,000 mt from the previous period, with the main increment coming from Fangchenggang, where copper concentrate inventory increased by 70,000 mt WoW. 》View SMM Metal Industry Chain Database

》View SMM Metal Prices, Data, and Market Analysis 》Subscribe to View Historical SMM Metal Spot Price Trends On March 21, the SMM Imported Copper Concentrate Index (weekly) was reported at -22.88 $/dmt, a decrease of 6.96 $/dmt from the previous week's -15.92 $/dmt. The pricing coefficient for 20% grade domestic trade ore was 93%-95%. During the week, the spot market saw active trading, mainly through mine tenders. A 20,000 mt Frontier tender result was announced, with two of the largest traders winning the bid at a mid-price of -60 $/dmt, for 5,000-10,000 mt bulk carriers; one trader sold 1,000 mt of Peruvian mixed ore, low in copper but high in lead and zinc, to a smelter at a high price of -10 $/dmt, with a loading period in April and QP at M+4; the Bisha 10,000 mt tender result was announced, with loading periods in April and May, at a high price of -40 $/dmt; the Lao mine tender results were announced, with one trader winning 20,000 mt for May and June at a low TC of -50 $/dmt, another trader winning 10,000 mt at a mid-TC of -60 $/dmt, with loading periods in November and December, and an additional 100,000 mt for 2026; KGHM's Sierra Gorda tendered 10,000 mt for June loading, QP at M+2, 10,000 mt for Q3 loading, QP at M+4, and 40,000 mt for 2026 loading, QP at M+4, with the tender closing on March 20; one trader sold 10,000 mt of clean ore to a major smelter at -20 $/dmt, with loading periods in April and June, QP at M+5; Freeport's Mission mine 20,000 mt tender result to a trader was announced at a mid-price of -40 $/dmt, with Q2 loading, QP at M+4; SPCC's Cuajone 10,000 mt tender result was announced at a mid-price of -50 $/dmt, with loading periods in April and May, QP at M+4. A large miner's tender results were announced, with 10,000 mt of standard clean ore to a trader at a low to mid-price of -50 $/dmt, and multiple sales of standard clean ore to smelters at a mid-price of -20 $/dmt, all with QP at M+3. According to SMM, a mining accident occurred at East Zhezkazgan mine in Kazakhstan's Ulytau region, owned by Kazakhmys, where a 1994-born miner fell into the bottom of shaft 57 while unloading and died on the spot. The company stated that production at East Zhezkazgan would only resume after comprehensive safety measures were strengthened and all safety hazards were eliminated. East Zhezkazgan produces around 600 mt (metal content) of copper per day. SMM also learned that Indian smelter Adani is currently in the furnace baking stage and is expected to start feeding material in the last week of March. The Indonesian government announced on Monday that it had issued a six-month copper concentrate export license to Freeport Indonesia, which stated that it had obtained a 1.27 million mt export license from the Indonesian Ministry of Trade, allowing ships carrying Freeport's copper concentrates to commence shipping. On March 13, the Panamanian president approved the export of 120,000 mt of Cobre Panama copper concentrate. Some market sources indicated that 120,000 mt of copper concentrate would be shipped to the Onsan smelter in South Korea and three Japanese smelters, without entering the Chinese market. On March 21, the SMM nine-port copper concentrate inventory was 643,500 mt, an increase of 68,300 mt from the previous week, with the main increase coming from the Port of Jinzhou, where the weekly copper concentrate inventory increased by 57,000 mt. 》View SMM Metal Industry Chain Database

》View SMM Metal Quotes, Data, and Market Analysis 》Subscribe to View Historical Price Trends of SMM Metal Spot On March 7, the SMM Imported Copper Concentrate Index (weekly) was reported at -$15.83/mt, down $1.43/mt from the previous period's -$14.4/mt. The pricing coefficient for 20% grade domestic trade ore was 93%-95%. During the week, the spot market showed a temporary stabilization after a decline. A trader sold 10,000 mt of Cerro Verde copper concentrates at a mid-to-high price of -$10/mt, with shipment scheduled for April and QP set at M+5, with normal gold and silver terms. Another trader sold 10,000 mt of clean ore and 10,000 mt of mixed ore at a mid-price of -$10/mt, with shipment scheduled for March/April and QP set at M+5. A smelter purchased 10,000 mt of South American clean ore at a mid-price of -$10/mt, with QP set at M+4 and shipment scheduled for April. As the LME futures market structure shifted from Contango to Backwardation, traders adjusted the QP for copper concentrates from M+5/M+6 to M+4 to mitigate business risks. During the week, the results of mine tenders were announced. Antofagasta's Centinela mine tendered 10,000 mt, with traders' winning bid price close to -$40/mt, shipment scheduled for April/May, gold Payable at 6-7g at 96%, and quality inspection fees borne by the buyer. On March 4, Indonesia's Ministry of Energy and Mineral Resources issued Ministerial Regulation No. 6 of 2025, amending provisions in Regulation No. 6 of 2024 regarding the completion of domestic metal mineral refining facilities. The new regulation aims to address temporary export needs under force majeure circumstances when special mining license holders are unable to operate refining facilities. According to SMM, the Indonesian government has lifted the export ban on Freeport copper concentrates, and the export license has been approved but not yet signed. Reportedly, some copper concentrate inventories are awaiting shipment. As of March 7, SMM's nine-port copper concentrate inventory stood at 610,600 mt, down 50,200 mt from the previous period, with the main reduction coming from Jinzhou Port. This week, Jinzhou Port's copper concentrate inventory decreased by 31,000 mt WoW. 》View SMM Metal Industry Chain Database