China’s Zijin Mining is advancing three large copper projects in Serbia as it seeks to raise production from one of Europe’s most important mining districts, even as allegations over labour practices threaten access to the US market.
The company has completed an expansion of the concentrator serving the Upper Zone at the Čukaru Peki copper-gold mine. It is now preparing block-cave developments at Čukaru Peki’s deeper Lower Zone and the Jama underground mine within the older Bor copper complex.
Zijin has also identified more than 5mn tonnes of copper-equivalent resources at Malka Golaja, which it has listed alongside Čukaru Peki and Jama as one of its principal global development projects. Zijin’s corporate programme
The Bor and Čukaru Peki operations produced a combined 296,000 tonnes of copper and 9.1 tonnes of gold in 2025, according to Zijin. The company’s combined 2026 guidance is 296,000 tonnes of copper and 8.1 tonnes of gold.
Further expansion is intended eventually to lift combined Serbian copper capacity towards 450,000 tonnes a year, although Zijin has not provided a complete schedule or consolidated capital budget.
Block caving would transform the underground operations
Čukaru Peki entered production in 2021 using the high-grade Upper Zone. Development of the much larger but lower-grade Lower Zone would require a different mining method and substantially greater capital.
Zijin is preparing to use block caving, in which a large orebody is undercut and allowed to collapse under gravity. The method can produce copper at low unit costs once operating at scale, but it requires extensive underground infrastructure and careful control of rock movement.
The Jama mine is also being prepared for block-cave expansion. Coordinating both projects could extend Serbia’s copper production for decades but exposes Zijin to simultaneous construction, geotechnical and financing risks.
Block caves require several years of development before generating full revenue. Unexpected rock behaviour, groundwater or slower-than-planned ramp-up can materially reduce project returns.
They can also cause subsidence at the surface. Environmental studies and land planning must therefore assess a much wider area than the underground footprint alone.
Malka Golaja provides a third growth option. The reported copper-equivalent resource indicates considerable scale, but Zijin has not published sufficient public detail on grades, resource classification, mine design or capital requirements to assess its economics independently.
Serbia has become central to Zijin’s European strategy
Zijin controls Čukaru Peki through Serbia Zijin Mining. At the Bor complex, it owns 63 per cent of Serbia Zijin Copper, with the Serbian state retaining 37 per cent.
The ownership structure gives the government direct exposure to dividends, investment and employment. It also exposes the state to the environmental, labour and reputational risks of the operation.
Zijin says its Serbian mines made it Europe’s second-largest copper producer in 2025. The assets are strategically important as European manufacturers seek more regional supplies of a metal required for power grids, renewable energy and electric vehicles.
Serbia’s position outside the EU complicates that opportunity. Its producers can supply the European market, but they will face increasing requirements to document labour conditions, emissions and the origin of raw materials.
Expansion at Bor must also manage historic environmental liabilities. Decades of mining and smelting have affected air, soil and waterways, while the growth of the Veliki Krivelj open pit has required negotiations over relocation of nearby residents.
Zijin says it has invested in new smelting capacity, wastewater recycling and environmental remediation. Larger production will nevertheless increase the amount of ore, tailings and waste that must be managed.
US action creates a new market-access risk
In June, US Customs and Border Protection issued a Withhold Release Order against copper and copper products manufactured by Serbia Zijin Copper.
The agency said its investigation found reasonable indications of forced labour, including abuse of vulnerability, withholding of wages, intimidation, restricted movement, retention of identity documents and excessive overtime.
US customs officers must now detain affected shipments. Importers can export or destroy the goods, or provide evidence showing that they were not produced using forced labour. US Customs decision
Serbia Zijin Copper said it opposed all forms of forced labour, took the matter seriously and was reviewing the allegations.
The direct financial effect will depend on how much Serbian copper was intended for US customers. The wider risk is that European manufacturers and commodity traders tighten their own due-diligence requirements.
Copper is commonly blended, refined and resold through several intermediaries. Buyers will increasingly require traceability capable of showing which mine and smelter produced the metal.
This could affect financing and offtake for Zijin’s expansion even if most output remains within Europe or Asia. Banks and industrial customers do not need to wait for a European prohibition before imposing contractual labour and human-rights standards.
Zijin’s Serbian programme offers Europe a substantial increase in nearby copper supply. Its success will depend not only on completing technically demanding underground mines, but also on demonstrating that the resulting metal can enter global supply chains without labour or environmental restrictions.
