Record Copper Boom in Serbia: Chinese Mining Profits Surge Past €1.3 Billion

A dramatic rise in global [[PRRS_LINK_1]]prices is transforming Serbia’s mining sector, pushing Chinese-operated companies to record profits exceeding €1.3 billion. This surge highlights Serbia’s growing role in the global supply chain for [[PRRS_LINK_2]], especially as demand intensifies due to electrification and the energy transition.

In early 2026, copper prices reached historic highs of $13,000–14,500 per tonne, driven by supply disruptions, strong industrial demand, and increasing investor focus on energy metals. For established producers, this environment has created a perfect storm of soaring revenues and expanding profit margins.

Zijin Mining Dominates Serbia’s Industrial Landscape

At the center of this boom is China’s [[PRRS_LINK_3]], which controls key operations in eastern Serbia. Its subsidiaries—Serbia Zijin Mining and Serbia Zijin Copper—have become the most profitable industrial entities in the country.

Financial data underscores this dominance. Serbia Zijin Mining alone reported over €1.1 billion in net profit in 2025, with revenues exceeding 213 billion dinars. Combined with Serbia Zijin Copper, total profits surpass the €1.3 billion mark, forming a powerful earnings hub within Serbia’s economy. These operations now represent a major share of national exports and industrial output, cementing their position as a cornerstone of Serbia’s economic growth.

Key Assets Driving Growth: Bor and Čukaru Peki

The rapid expansion is anchored in two strategic assets: the Bor mining and smelting complex and the Čukaru Peki copper-gold deposit.

• The Bor complex has undergone a remarkable transformation, evolving from a loss-making state enterprise into a high-margin export platform.
• The Čukaru Peki deposit, one of Europe’s richest, has delivered high-grade copper output since 2021, significantly boosting overall production and profitability.

Together, these sites form the backbone of Serbia’s copper industry, enabling consistent output growth and strong cash generation.

Billions in Investment Reshape the Sector

Since acquiring Bor, Zijin has invested more than €2.2 billion into Serbia’s mining infrastructure. This includes:

• Modernization of mining operations
• Upgrades to smelting facilities
• Expansion of transport and energy infrastructure

These investments have integrated Serbia into a global copper supply chain, with a strong orientation toward Asian markets.

Uneven Value Distribution Raises Questions

Despite strong production and job creation, the distribution of profits remains uneven. A large share of earnings is generated through intra-group sales of copper concentrate to affiliated companies abroad.

This creates a structural imbalance where:

• Local benefits include employment and export growth
• Financial gains are largely transferred Serbia through dividends and internal trade

As copper prices rise, this imbalance becomes even more pronounced, intensifying debates around value capture and economic sovereignty.

Economic Impact: Growth with Structural Challenges

From a macroeconomic perspective, the copper boom brings both opportunities and concerns.

Positive effects include:

• Higher export revenues
• Increased tax income
• Stronger industrial activity

Challenges include:

• Profit concentration in foreign-owned companies
• Questions about tax efficiency
• Limited development of a domestic value chain

This dual impact continues to shape discussions on Serbia’s long-term industrial strategy.

The influence of Chinese companies extends beyond mining. Investments have steadily grown across infrastructure, [[PRRS_LINK_4]], and energy, with a strong focus on resource extraction. Even before the current price surge, Chinese firms in Serbia were generating over €1 billion in profits. The ongoing copper rally has accelerated this trend, turning Serbia into a key node in China’s global mining portfolio.

A Strategic Resource in a Changing World

Serbia’s copper sector is no longer just an industrial success story—it is part of a broader geopolitical landscape of critical minerals. Issues such as ownership, export flows, and processing capacity are becoming increasingly important. Ultimately, the current profit surge reflects more than favorable market conditions. It illustrates how global capital, resource control, and industrial policy intersect in a world where copper plays a defining role in the future of energy and technology.