Chinese Mining Stocks Rise as Copper Futures Surge to Record

Jiangxi Copper's potential acquisition of U.K.-listed SolGold would significantly enhance the Chinese miner's mineral reserves, says Phillip Securities Hong Kong's Margaret Li in an email. SolGold's core asset, the Cascabel project in Ecuador, has a primary deposit containing copper, gold, and silver. The potential buy--the main driver for Jiangxi's Monday share gains--signals the miner's long-term commitment to resource expansion, she says. Jiangxi Copper's rally could also be fueled by higher copper prices, stemming from increased demand for the metal and expectations of a Federal Reserve rate cut. Still, Li is uncertain if the company will make a formal offer for SolGold, which it must disclose by Dec. 26. Its Hong Kong shares rise 8.9% to HK$33.42. (megan.cheah@wsj.com)

By Megan Cheah

Shares of Jiangxi Copper rose Monday after the Chinese miner's $1 billion bid to take over U.K.-listed SolGold was rejected.

Jiangxi's Hong Kong-listed shares rose as much as 12% in early trade before paring gains to 8%. Its stock was last up by a similar amount in Shanghai.

That came after SolGold's board said Friday it had unanimously rejected the takeover proposal from Jiangxi--its biggest shareholder, according to FactSet.

Jiangxi had submitted two non-binding cash offers to acquire SolGold, which focuses on gold and copper mining and has operations in Latin America.

Nanchang-based Jiangxi already has a 12.2% stake in the company. Mining groups BHP Group and Newcrest Mining hold stakes of 10.4% and 10.3% in SolGold, respectively, according to FactSet.

Jiangxi said its acquisition bid remains in the non-binding offer stage, and that it will announce whether it intends to buy SolGold by Dec. 26, as required by U.K. regulations.

There has been a flurry of dealmaking in mining fueled in part to companies' push to secure supplies of copper, a key component in sectors from data centers to electric vehicles.

In September, Anglo American and Teck Resources agreed to a merger that will create one of the world's biggest copper producers in one of the largest-ever deals in the mining industry.

Write to Megan Cheah at megan.cheah@wsj.com

The growing copper supply shortage could drive prices of the commodity higher, DBS Group Research's Eun Young Lee says in a note. Average prices of the base metal are likely to increase by 3.1% to $9,900 a ton in 2026, as the supply dearth could rise to 316,000 tons next year, the analyst says. The shortage likely stems from sustained demand growth, driven by investments in data centers and power grids, she adds. The analyst also notes limited supply growth in mined copper, given severe disruptions and falling ore grades. Chinese copper-mining companies could benefit, with Zijin Mining and MMG as DBS's top picks. The former has a strong gold and copper asset portfolio, while the latter is an ideal copper proxy as it derives 74% of its revenue from the metal. (megan.cheah@wsj.com)

By Adriano Marchese

Shares in Ivanhoe Mines were higher Wednesday morning after the miner named company veteran Tom van den Berg as chief operating officer.

Shares rose 6.7% to 14.10 Canadian dollars ($10.01).

Van den Berg will take on the new role starting Jan. 1. He is currently senior executive of operations at Ivanhoe's Kamoa-Kakula project in the Democratic Republic of Congo.

The company jointly owns the project with Zijin Mining, the DRC government, and Crystal River, and Van den Berg will remain at Kamoa-Kakula for an interim period to oversee the operational recovery and turnaround strategy there.

He succeeds Mark Farren, who will transition from his executive role to become strategic adviser to the board and continue to support the company, Ivanhoe said Wednesday.

Write to Adriano Marchese at adriano.marchese@wsj.com

Zijin Mining's earnings growth could be underpinned by optimism around copper and gold prices, says DBS Group Research's Eun Young Lee in a note. Appetite for gold has been strengthened by central banks increasing their gold holdings and speculative demand linked to exchange-traded funds, she says. Copper's supply shortage could boost its prices, she adds. DBS raises its 2026 gold and copper price forecasts by 15% and 3%, respectively. The bank accordingly lifts its 2025 and 2026 earnings estimates for the Chinese miner by 8.6% and 18.7%, respectively. It also raises its target price on Zijin Mining's H shares to HK$40.00 from HK$31.00 and A shares to CNY37.00 from CNY30.00. H shares are down 0.8% at HK$31.20, and A shares are 1.2% lower at CNY29.00. (megan.cheah@wsj.com)

                                Close      Prior     Change   % Change 
                                -----      -----     ------   -------- 
 Air China A                     8.73       8.73      -0.06      -0.68 
 Anhui Conch Cement A           23.71      23.71      +0.12      +0.51 
 Bank of China                   5.68       5.68      +0.02      +0.35 
 Baoshan Iron & Steel A          7.64       7.64      +0.03      +0.39 
 Bright Dairy & Food A           8.72       8.72      +0.19      +2.23 
 China Eastern Airlines A        5.29       5.29      +0.03      +0.57 
 China Merchants Bank           42.96      42.96      +0.24      +0.56 
 China Minsheng Banking A        4.04       4.04       unch       unch 
 Chn Petro & Chem Sinopec        5.67       5.67      +0.01      +0.18 
 China Southern Airlines         7.29       7.29      +0.05      +0.69 
 China United Ntwk Comms         5.50       5.50      -0.03      -0.54 
 China Yangtze Power A          28.62      28.62      +0.09      +0.32 
 Chongqing Brewery A            54.35      54.35      +0.35      +0.65 
 CITIC Securities A             29.06      29.06      -0.24      -0.82 
 COSCO SHIPPING Engy A          12.41      12.41       unch       unch 
 COSCO SHIPPING Special A        7.49       7.49      +0.08      +1.08 
 Daqin Railway                   5.73       5.73      -0.01      -0.17 
 Dongfeng Automobile A           7.85       7.85      +0.08      +1.03 
 Fujian Yanjing Huiquan         12.06      12.06      +0.09      +0.75 
 Haier Smart Home A             26.88      26.88      -0.22      -0.81 
 Hainan Airlines Hldg A          1.83       1.83      -0.01      -0.54 
 Hisense Visual Tech A          25.50      25.50      +0.02      +0.08 
 Hua Xia Bank A                  6.99       6.99       unch       unch 
 Huadian Power Intl              5.47       5.47      -0.07      -1.26 
 Huaneng Pwr Intl                8.19       8.19      -0.08      -0.97 
 INESA Intelligent Tech A       19.19      19.19      -0.08      -0.42 
 Jiangsu Expressway A           13.81      13.81      -0.09      -0.65 
 Jiangxi Copper A               39.27      39.27      -0.98      -2.43 
 Lucky Film A                    7.78       7.78      +0.06      +0.78 
 Maanshan Iron & Steel A         4.37       4.37      +0.34      +8.44 
 Nanjing Iron & Steel A          5.49       5.49      +0.01      +0.18 
 SAIC Motor A                   15.90      15.90      -0.18      -1.12 
 Shandong Gold-Mining A         36.10      36.10      -0.31      -0.85 
 Shanghai Bailian Group A        9.26       9.26      +0.09      +0.98 
 Shanghai Pudong Dev Bank       11.67      11.67      -0.02      -0.17 
 Shanghai Xinhua Media A         6.89       6.89      -0.04      -0.58 
 Shenyang Jinbei Auto A          5.00       5.00      +0.05      +1.01 
 Sichuan Changhong Elec A       10.04      10.04      -0.11      -1.08 
 SINOPEC Oilfield Svc A          2.35       2.35      +0.02      +0.86 
 SINOPEC Shanghai PetroChm       2.83       2.83      +0.01      +0.35 
 Tsingtao Brewery A             66.16      66.16       unch       unch 
 Yankuang Energy Group A        15.16      15.16      -0.57      -3.62 
 Zhongjin Gold A                21.41      21.41      -0.06      -0.28 
 
Source: FactSet