Tongling Nonferrous Metals Group Co., Ltd. (stock abbreviation: Tongling Nonferrous, stock code: 000630) recently disclosed in an announcement that the Phase II project of the Mirador Copper Mine, owned by its controlling subsidiary China Railway Construction Tongguan Investment Co., Ltd., will face delays. The postponement is primarily attributed to policy adjustments and administrative review inefficiencies in Ecuador, with the review progress of the core document, the "Mining Contract," falling short of expectations. The company anticipates that this matter will have a certain impact on its 2026 performance. Currently, preliminary negotiations have been completed and submitted for review, and the company is actively advancing subsequent procedures.

Public information indicates that the Mirador Copper Mine is located in the Zamora-Chinchipe Province in southeastern Ecuador. It serves as a core mineral asset in Tongling Nonferrous's overseas portfolio and is one of the world's super-large copper mines. The project is led and controlled by Tongling Nonferrous. Phase I officially commenced production in 2019 and has achieved full capacity with an annual output of 121,000 tons of copper. Phase II broke ground in August 2023 and was originally scheduled for completion and commissioning in July 2025. Upon operation, it is expected to produce over 140,000 tons of copper annually, with full capacity reaching 250,000 tons per year. This would significantly increase Tongling Nonferrous's self-produced copper-in-concentrate volume, raising its raw material self-sufficiency rate from 15% to 25% and positioning it among the top three A-share listed copper companies in terms of copper production. The delay in Phase II implies a phased postponement of this capacity expansion plan.

Regarding the reasons for the delay, the announcement explicitly points to Ecuador's policy environment and administrative efficiency. It is reported that Ecuador previously suspended the registration of mining concessions due to regulatory compliance issues, with phased registration resuming only in 2025. Registration related to large-scale metal mining is expected to commence in early 2026. This policy adjustment has objectively affected the review process of the Mirador Phase II "Mining Contract." Additionally, the Phase II expansion involves the re-demarcation of mining areas and negotiations with local communities over land rights, further complicating the review process.

Notably, production at the Mirador Copper Mine has previously been impacted by Ecuador's electricity rationing policies, with multiple production suspensions occurring between November and December 2024 due to tight power supply. This latest delay in contract review once again highlights the geopolitical and policy uncertainty risks faced by overseas mining projects.

Despite the short-term performance pressure caused by the project delay, Tongling Nonferrous stated that preliminary negotiations have been completed and submitted for review, and it is actively communicating with relevant Ecuadorian authorities to advance subsequent procedures. Market analysis suggests that the Mirador Copper Mine has proven and controlled copper metal reserves exceeding 6 million tons, with costs approximately 12% lower than the industry average. The long-term investment value of the Phase II project remains intact. This delay may represent a phased adjustment, and once the review process is completed, the project is still expected to release substantial capacity, enhancing the stability of the company's copper resource supply chain.

As one of China's earliest-established copper industrial bases, Tongling Nonferrous has developed an industrial structure centered on nonferrous metals with coordinated development across multiple sectors. Its core industrial layout encompasses three main segments:

1. Copper Products Business: This is the company's core pillar industry, accounting for 83.78% of its 2024 revenue. Main products include cathode copper and copper processed materials. In 2024, cathode copper production reached 1.768 million tons, ranking among the top four globally. Its products are widely used in power, new energy vehicles, photovoltaics, and other fields. The company's current copper smelting capacity stands at 1.7 million tons per year, with plans to exceed 2.5 million tons by 2025, aiming to join the global top tier.
2. Precious Metals and By-products Business: Accounting for 13.58% of 2024 revenue, this segment provides stable income. Gold, silver, and other precious metals are co-produced during the copper smelting process. In 2024, revenue from by-products like gold reached RMB 19.273 billion, with a gross margin of 15.17%, serving as an important profit supplement beyond the core business.
3. High-End Processing Business (e.g., Copper Foil): This is a strategic growth highlight. Through its controlling subsidiary Tongguan Copper Foil (72.38% stake), the company is involved in producing lithium battery copper foil and high-end copper foil for 5G applications. Current capacity has reached 80,000 tons per year. Its lithium battery copper foil holds over 20% domestic market share, supplying leading enterprises like BYD and CATL. Its RTF/HVLP copper foil for 5G has broken foreign monopolies and is successfully applied in base stations and communication equipment.

In terms of resource layout, Tongling Nonferrous has established a "domestic + overseas" mineral resource system. Domestically, it owns core mines such as the Tongling Dongguashan Copper Mine and the Anqing Copper Mine. Overseas, besides the Mirador Copper Mine in Ecuador, it has expanded its resource reserves and international market presence through acquisitions like Canada's Corriente and France's Tongguan Grisey. The Mirador Copper Mine is its core overseas asset, with equity resource reserves reaching 4.56 million tons.

Furthermore, the company is involved in related industries such as chemicals, equipment manufacturing, and logistics and transportation, forming a diversified development structure. In the first three quarters of 2025, it achieved revenue of RMB 121.893 billion and net profit of RMB 2.268 billion, maintaining a steady operational posture.