Zijin Mining: Transit into Lithium Continues on Expansion Course

Zijin Mining's ambitious plans for the development of strategically important lithium are taking further shape as the company negotiates the acquisition of a majority stake in lithium producer Zangge Mining. The discussions are mentioned in a recent stock market report from Hong Kong, shedding light on the talks with the main shareholder Tibet Zangge Venture Capital. The potential acquisition is still subject to approval by the board of directors and the formal signing of a purchase agreement. Zangge, with a market value of around 46.6 billion yuan, is based in the Qinghai province. There, the company utilizes local salt lakes for cost-effective mineral extraction and is also engaged in potash production. Zijin Mining, owned by the Chinese state and known for its international acquisitions in the gold and copper sectors, plans to commence lithium production in Congo next year. This commitment is happening against the backdrop of falling lithium prices as demand from the booming electric car sector grows, in which China is strengthening its position across the entire supply chain. Among vehicle manufacturers, companies like BYD and Nio are accelerating their international ambitions. These developments are reflected in investments from South America to Europe. For instance, the Chinese battery producer CATL announced the construction of a lithium battery factory in Spain in collaboration with Stellantis. Prices for lithium carbonate, which reached peaks in 2021 and 2022, have since fallen due to concerns about excessive capacities. The leading lithium supplier Albemarle noted in November that delivery to the West was economically unviable owing to low prices and high operating costs. A Chinese stock market report pointed to a possible 'change of control' at Zangge. Zangge's stock trading was suspended on Friday, while Zijin's rose by 3.4 percent. Most recently, Zijin completed a series of acquisitions, including the purchase of a gold mine in Peru and Nevsun Resources, a Canadian copper producer.