China's development of another world-class copper mine is approaching reality.
On the evening of September 10, Sichuan Hongda Co.,Ltd. (SH600331) disclosed that it plans to increase investment in its subsidiary Tibet Hongda Duolong Mining Co., Ltd. (hereinafter referred to as "Duolong Mining"), jointly with its controlling shareholder Sichuan Hongda (Group) Co., Ltd. (hereinafter referred to as "Hongda Group").
One of Duolong Mining's main assets is the Duolong copper mine exploration rights. The Duolong copper deposit is located in Wuma Township, Gaize County, Tibet Autonomous Region. Located in the northern plateau of Tibet with terrain mainly consisting of mountains and valleys, it is the core part of China's first world-class super copper mining cluster - the Duolong mining area, and is one of the most valuable copper mines for development in China and globally. From last year until now, Sichuan Hongda Co.,Ltd. has repeatedly mentioned accelerating the development of the Duolong copper mine. The biggest positive development released this year was that the judicial freezing of Sichuan Hongda Co.,Ltd.'s shareholding in Duolong Mining has been lifted, which also cleared the main obstacle to mining.
On the evening of September 10, Sichuan Hongda Co.,Ltd. announced that the company and Hongda Group plan to jointly make a phased investment in Duolong Mining. The company will contribute 159 million yuan in cash. After Sichuan Hongda Co.,Ltd. and Hongda Group fulfill their investment obligations, the shareholding ratios of Sichuan Hongda Co.,Ltd., Hongda Group, and Tibet Shengyuan Mining Group Co., Ltd. in Duolong Mining will remain unchanged at 30%, 40%, and 30% respectively.
Duolong Mining currently holds two exploration rights: the Duolong copper mine exploration in Gaize County, Tibet Autonomous Region, and the Duobuzaxi copper mine detailed survey in Gaize County, Tibet Autonomous Region. Among these, the Duolong copper mine has entered the "exploration to mining" transition stage, while the Duobuzaxi copper mine is currently advancing detailed survey work.
As of June 30, 2025, Duolong Mining had total assets of 755 million yuan, net assets of 535 million yuan, and an asset-liability ratio of 29.18%.
The Duolong copper mine is known as "China's last undeveloped world-class copper mine." This year, the "Copper Mine Resource Development and Utilization Plan for Duolong Mining Area in Gaize County, Tibet Autonomous Region" passed expert review. According to reports, the Duolong mining area has proven copper reserves of 20 million tons, ore resource reserves of 1.44 billion tons, and an average copper grade of 0.48%. The Duolong copper mine's designed mining scale is 75 million tons per year, using open-pit mining methods, with a total service life of 24 years (including a 2-year construction period). The copper mine's annual copper production (metal content) equals the annual ore mining volume multiplied by the average copper grade, which calculates to approximately 360,000 tons of annual production.
Major domestic copper-producing listed companies include Zijin Mining (SH601899) and China Molybdenum (SH603993), with China Molybdenum producing 650,000 tons of copper in 2024. Comparatively, the Duolong copper mine's production scale would be more than half of China Molybdenum's output.
Duolong Mining was established as early as September 2014, and with such abundant copper reserves, why has mining been delayed?
Industry insiders familiar with the mine indicate that development has been delayed due to poor infrastructure conditions on the plateau, significant exploration difficulties, massive upfront investment requirements, and lengthy timelines.
Additionally, due to historical reasons involving Sichuan Hongda Co.,Ltd., its shareholding in Duolong Mining was previously under judicial freezing. According to the company's annual report last year, due to the execution of a contract dispute litigation case, Sichuan Hongda Co.,Ltd.'s 30% stake in Duolong Mining was frozen.
However, Sichuan Hongda Co.,Ltd.'s interim report this year shows that since the contract dispute case has been concluded, the corresponding 30% stake in Duolong Mining has been unfrozen. At that time, Sichuan Hongda Co.,Ltd. stated that the risk factors that had significantly constrained the company's business development in recent years had been thoroughly resolved.
According to public information, Sichuan Hongda Co.,Ltd. began recruiting heads of core departments for Duolong Mining in June this year, including the exploration technology department, investment and construction department, safety and environmental protection department, and business management department. By September, the candidate winners for the "75 million tons/year mining and processing engineering geotechnical survey project" of Duolong copper mine were also announced.
The Duobuzaxi copper mine is another asset of Duolong Mining. According to reports, based on the geological detailed survey results from 2024, exploration investment in the Duobuzaxi copper mine will be increased in 2025. Relevant parties completed the optimization and adjustment of the detailed survey plan and expert review in April 2025, striving to complete the detailed survey report by year-end and advance report review and filing work.
Sichuan Hongda Co.,Ltd. also stated that given the large scale, high investment amount, and long construction cycle of the Duolong copper mine project, funds need to be raised through various means including shareholder investment and external financing, based on development and construction progress and capital utilization plans.
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