Jiangxi Copper net earnings drop by 13% for 2007

HONG KONG: Jiangxi Copper, the mainland's largest integrated copper producer, said it plans to raise its capital expenditure for 2008 to 4.3 billion yuan from 3.2 billion yuan a year before to boost its resources base and acquisitions.

Jiangxi Copper posted lower-than-expected earnings for last year as declining processing fees and higher costs for smelting eroded its profit. Its total turnover surged 67.6 percent to 41.2 billion yuan in 2007 but net profit fell 12.8 percent to 4.2 billion yuan.

Analysts said low processing fees, a higher effective tax rate and dependence on other firms for copper concentrates could be the reason for lower earnings.