Chinese copper and gold producer Zijin Mining Group revealed on Friday it is in talks with Zangge Mining’s top two shareholders to buy a controlling stake in the lithium and potash miner.
The company said discussions with Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management “may result in a change in control” of the target.
The two shareholders collectively own about 40% of the 46.63 billion yuan ($6.4 billion) miner, which is based in China’s minerals-rich western region of Qinghai.
The potential acquisition of Zannage would allow Zijin to consolidate its ownership over the Julong copper project in Tibet, which it runs through a joint venture with the target miner.
Zijin, one of China’s most acquisitive metals companies and its biggest listed miner, secured government approval last year to boost the Julong mine’s output to about 350,000 tonnes per day. Once the expansion is completed, the asset will become China’s largest single copper operation, with annual ore mining and processing volumes exceeding 100 million tonnes.
The Chinese mining giant took control of the Julong project in 2020 and had it up and running in just 18 months. Zijin also owns other assets in Tibet, including the Zhunuo copper mine, which it acquired in August 2023. Additionally, it holds a controlling interest in lithium producer Lakkor Resources, and is the second-largest shareholder of Tibet-based companies Yulong Copper and Tianyuan Mining.
EV metals push
The takeover talks adds to Zijin’s string of recent global acquisitions aimed at boosting gold production and expanding its footprint in battery metals, including copper and lithium.
The state-backed miner has added multiple lithium assets to its portfolio, notably Canada’s Neo Lithium, which was focused on lithium mining in Argentina, as well as majority stakes in the Lakkor Tso Lithium Salar mine in China’s Tibet region and the Xiangyuan lithium mine in Hunan province.
Zijin is also involved the construction of plants to produce lithium iron phosphate for cathodes used in electric vehicles.
It has also increased presence in precious metals, acquiring the Akyem gold mine in Ghana, a majority stake in Rosebel gold mines in Suriname, La Arena copper-gold mine in Peru, and an indirect interest in the Koné gold project in Côte d’Ivoire to name a few.
Zijin has since postponed the start of certain projects in Argentina and Tibet until 2025, citing weak lithium prices and permitting delays. Despite these setbacks, the company plans to kick off production at its first lithium exploration project in the Democratic Republic of Congo next year.
Source: MINING.COM – Read More
