By Julian Luk
LONDON (Reuters) — China's largest private copper producer Nanfang Nonferrous is due to bring a major new smelter to production by October, more than doubling its capacity, a few months ahead of expectations, four sources with direct knowledge of the matter told Reuters.
Used for wiring in electric vehicles, copper is a key plank of the energy transition. Chinese firms have ambitious plans to dominate production of the refined metal also used in the power and construction industries.
Nanfang's new copper plant which will take its total copper production capacity to 700,000 metric tons a year from 300,000 tons suggests China's goal of supply-side reforms to make the country self-sufficient is achievable, the sources said.
The 700,000 tons of enhanced capacity will amount to about 6% of refined copper output in China, expected to produce more than 50% of global supplies estimated at around 25 million tons.
China's central bank earlier in August outlined measures to guide more financial resources to the private sector to help revive economic activity and growth.
Nanfang Nonferrous did not respond to a Reuters request for comment by email, telephone or WeChat.
The 400,000 metric ton-per-year smelter, located in Chongzuo city of Guangxi prefecture, will start processing copper concentrates within three months — compared with market expectations for the first half of 2024.
Concerns had previously been cited over limited liquidity available to private firms.
«It came as a surprise,» one major copper concentrates supplier said, adding that Nanfang had been buying more raw copper materials on the spot market over the past two weeks.
Purchasing copper concentrates requires access to liquidity and cash, particularly
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