In 2016, China's HBIS Group acquired the financially troubled Smederevo steel plant in Serbia for 46 million euros and subsequently established the "HBIS Serbia Company," creating an economic miracle in the country.
By 2018, the steel plant had become Serbia's top exporter, maintaining this position for four consecutive years (2018-2021), with the past two years holding the second position.
However, another Chinese company, Zijin Mining, unexpectedly surpassed the Smederevo steel plant in terms of export value.
Nowadays, Serbia stands as Europe's second-largest copper producer, with gold byproduct making it an important gold producer in Europe as well.
The copper mines in Serbia are mainly concentrated in the city of Bor.
Located about 160 kilometers southeast of the Serbian capital, Belgrade, most of Bor is mountainous, with a population of approximately 50,000. It was once a city developed from copper mining.
In 1902, copper mines were discovered in Bor.
During its heyday, the Federal Republic of Yugoslavia (comprising Serbia, Montenegro, Slovenia, Croatia, Bosnia and Herzegovina, and North Macedonia) government established the state-owned Bor Copper Mine Company, which employed over 20,000 people at one point, making it the largest copper mine in Europe and dubbed the "Pearl of Europe."
However, in 1991, the Federal Republic of Yugoslavia dissolved, and in 1992, Serbia and Montenegro formed the Federal Republic of Yugoslavia (FRY).
In March 1999, the Kosovo War erupted.
After the Kosovo War, the Bor Copper Mine became a prime target for NATO bombings.
Post-war, due to sanctions imposed on Serbia, production at the Bor Copper Mine came to a standstill.
To alleviate the situation, Serbia sold the Bor Copper Mine to several foreign companies, but these companies were only interested in easily accessible mines.
As high-grade copper mines gradually depleted, mining low-grade ore became unprofitable. Thus, these companies "returned" the mines to the Serbian government in 2010.
Upon government takeover, the operation of the Bor Copper Mine became increasingly difficult due to aging equipment, outdated technology, lack of funds, and intense market competition, accumulating debts and relying on government subsidies to survive.
In April 2016, China's HBIS Group acquired the Smederevo steel plant, turning it profitable and ending seven years of losses.
In December 2018, China's Zijin Mining Group signed an agreement with the Serbian government to invest $350 million to acquire 63% of the shares of the Bor Copper Mine, assuming $200 million in debt and retaining over 5,000 employee positions.
This was the largest investment project by China in Serbia at that time.
After the Chinese takeover, the mine became profitable within just six months.
In 2019, Zijin Mining Group invested $474 million to fully acquire the upper ore body of the Cukaru Peki copper-gold mine, becoming one of the world's top ten high-grade super-large copper-gold mines.
In October 2021, the upper ore body of the mine officially commenced production, with the lower ore body under construction.
The combined production of the Bor Copper Mine and the Cukaru Peki copper-gold mine reached 220,000 tons of copper and 8 tons of gold, surpassing the Smederevo steel plant, making Zijin Mining the largest exporter in Serbia.
Meanwhile, Serbia became the second-largest copper producer in Europe and one of the world's major copper-producing countries.
In September 2023, at the China International Investment and Trade Fair, Serbia's Ministry of Mining and Energy signed a Memorandum of Understanding with Zijin Mining Group on the development of the lower ore body of the Cukaru Peki copper-gold mine, with China investing $3.811 billion to expand production.
Zijin Mining stated that the future annual copper production of the Cukaru Peki copper-gold mine and the Bor Copper Mine would reach 500,000 tons, making it the largest copper enterprise in Europe.
This would also make Serbia the largest copper producer in Europe.
It is worth noting that Zijin Mining sells the gold it mines to the National Bank of Serbia, increasing the country's gold reserves and helping to stabilize the national currency.
In 2023, bilateral trade between China and Serbia amounted to 30.6 billion RMB, although not large in scale, it grew rapidly.
From 2014 to 2023, bilateral trade between China and Serbia increased by 9.28 times, with China's imports from Serbia increasing by 16.82 times.
This is thanks to China's investments and production in the Bor Copper Mine and the Cukaru Peki copper-gold mine in Serbia.
With the advancement of global decarbonization and the transition to green energy, copper, as an important raw material, is increasingly widely used in wind turbines, power transmission networks, electric vehicles, smart equipment, aerospace, and other fields.
According to McKinsey research data, by 2031, global annual demand for copper will increase from the current 22 million tons to 36.6 million tons, with market demand surpassing supply. Therefore, competition among industrial powers for copper resources is intensifying.
The story of the Bor Copper Mine and the Smederevo steel plant in Serbia is reminiscent of each other.
Both have over a century of development history, experiencing glory as well as difficulties and setbacks.
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