China’s Zijin Mining has confirmed its intention to invest an additional $3.8bn in Serbia, according to a memorandum of understanding (MoU) signed between the company and the Serbian government. 

The investment will be made to develop the Lower Zone of the Cukaru Peki Mine, and is expected to place Serbia among the largest European copper and gold producers. 

Zijin and the Serbian government also signed a second MoU on the development of the 300 MW solar power plant project, which will meet the company’s needs for electricity. The power plant is worth $200mn, a government statement said. 

“Thanks to today's memorandum, which includes $3.8bn of new investments, Serbia will rank among the largest European copper producers and leading gold producers, but also create the possibility for additional investments,” said Minister of Mining and Energy Dubravka Djedovic Handanovic. 

Zijin already employs around 7,700 people in Serbia.

As well as the Cukaru Peki Mine, it is also the owner of the RTB Bor copper mining and smelting complex. 

The MoUs were signed during the One China, One Serbia Investment Forum, part of the 23rd China International Investment and Trade Fair. The investment was expected as plans to sign the agreement had already been reported over the summer. 

Djedovic invited other companies from China to invest in Serbia, where foreign direct investments (FDI) more than quadrupled between 2012 and 2022, to $4.4bn.

Mining is an important sector in Serbia. It is expected to have grown by 22% year on year in 2022, according to the government. 

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