Jiama copper mine, owned by China Gold Group, overflowed with tailings at a tailings dam in Tibet province on March 27, which affected another large copper tailings pond nearby.
Jiama copper mine is the fifth largest copper mine in China, with copper concentrate production accounting for nearly 5% of the total in China. According to Mysteel's survey, this event will lead to a 30% decrease in the copper concentrate output of Jiama copper mine in 2023 compared to the original plan, and a 1.5% decrease in the total output in China in 2023.
The interference rate of overseas copper mines gradually increased from mid-December 2022, until March 2023, when global supply basically resumed. There is a time difference between the interferences overseas and this time, so it will not have a significant impact on the overall supply. Moreover, the high inventory of some mines and the release of production from new overseas copper mine projects, including the largest newly increased project in 2023, Teck's Quebrada Blanca phase II, will further quell supply fluctuations.