Copper giant seeks investment (2)

Although it isn't likely to start operation this year, Li said the mine would be put into production within the 12th Five-Year Plan (2011-15).

Once the mine is up and running it will make JCC one of the major players in China's rare earths industry, along with Baogang Group from Inner Mongolia autonomous region and China Minmetals Corp.

China's copper consumption has grown from 1.9 million tons in 2000 to 7.8 million tons in 2012, accounting for 40 percent of the world's total.

But more than 70 percent of domestic consumption still relies on imports, Li said, and he called for more government support for Chinese mining enterprises to acquire overseas resources to boost domestic supply.

Li said copper demand in China is likely to grow another 9 to 10 percent, which should drive up the copper price to an average of $8,100 a ton.

The three-month copper futures price on the London Metal Exchange, a benchmark price, was $7,810 per ton on Thursday.

Although JCC is the largest producer of copper products in China and second-largest in the world, pricing still remains a problem, Li said.

Most of China's copper enterprises are barely breaking even because 90 percent of the profits are in the hands of foreign companies, he said.

JCC is in joint venture with China Metallurgical Group Corp in Afghanistan and Minmetals in Peru to develop copper mines in those countries.

Li said those projects are sometimes hindered by disputes with local officials over issues such as striking workers.

Li suggested that many of the problems could only be solved with help from the national government "but this is still missing at the moment".