Chinese copper producer Jiangxi Copper has shelved its copper scrap processing deal with Malaysia.
Zeng Gaoqing, chairman, Jiangxi Copper, noted in a statement on Thursday that the company has not pursued its plans to build a refined copper processing plant in Sabah, Borneo Island, Malaysia, but did not provide a reason for scrapping the plan.
Gaoqing’s predecessor had announced the plan in 2019, intending to facilitate accessible onward shipments to make up for China’s increased domestic consumption, according to media reports.
Meanwhile, Jiangxi Copper will continue to monitor the markets before announcing future expansion plans considering the existing tight copper supply. Gaoqing reiterated that the company’s primary smelter in Guixi was running profitably, with annual production costs declining steadily. The company has targeted a yearly copper cathode output of 1.73mn mt in 2021.