Copper pushes Serbia's GDP up: Zijin's contribution to double in 2021

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Zijin Bor Copper's business and investments, but also the highest price of copper in the world markets in this century, could double the company's share in Serbia's GDP this year compared to 2019, the Macroeconomic Analysis and Trends (MAT) magazine has concluded.

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Namely, according to them, with the current price 9,000 US dollars per one ton of copper, Zijin Bor Copper could contribute to GDP growth by more than 0.2 percent, while in 2019 that contribution was 0.1 percent.

It is stated that the share of that company in the GDP of Serbia is around 0.35 percent, and that large investment projects that continued last year amounted to 172.4 million euros, of which 124.9 million concerned domestic suppliers.

"The assessment is that investment projects generated 6.6 billion dinars (56.4 million euros) of gross value added in 2020, which represents 0.12 percent of Serbia's GDP for 2019," states MAT.

Zijin Bor came up in second place of largest exporters in Serbia in 2020 with 388.9 million dollars, and in 2019 it was in eighth place, according to MAT.

Although without detailed financial reports from the company, MAT estimates that it operated profitably in 2020, hiring 5,482 workers, which is an increase by 327 workers.

It is stated that their sales revenues reached 700 million dollars, which is 34.4 percent more than in 2019.

Considering the activities of Zijin Bor, the magazine said that the opening of the Novo Cerovo mine last year reduced the need for the purchase of copper-bearing raw materials, while the plan for 2021 is to open an additional mine, Cukaru Peki.

MAT's analysis is based on the fact that at the beginning of this year, the price of copper in world markets exceeded the threshold of 9,000 US dollars per ton, which, taking into account the value of the dollar, is the highest price in this century.

It is stated that due to its wide application primarily in industry, copper is important in the long run in renewable energy sources and electromobility, while relatively low global reserves make copper material of strategic importance globally.

Copper and its price are strongly linked to economic growth, primarily the dynamics of China's industrial production.

(Telegraf Biznis)