Chinese copper and gold producer Zijin Mining Group announced on Friday that it is in negotiations with the top two shareholders of Zangge Mining to acquire a controlling stake in the lithium and potash miner.
The deal, if finalized, could significantly enhance Zijin’s position in the critical minerals market.
Zijin disclosed that discussions with Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management “may result in a change in control” of Zangge Mining.
These two shareholders collectively own approximately 40% of Zangge, a company valued at 46.63 billion yuan ($6.4 billion) and based in the mineral-rich Qinghai region in western China.
Acquiring Zangge Mining would enable Zijin to consolidate its ownership of the Julong copper project in Tibet, which it operates through a joint venture with the target company.
This project is poised to become China’s largest single copper operation, with annual ore mining and processing volumes exceeding 100 million tonnes following its expansion.
Zijin, known for its aggressive acquisition strategy, took control of the Julong project in 2020 and brought it into operation within 18 months.
It also operates other assets in Tibet, including the Zhunuo copper mine, acquired in 2023. Additionally, Zijin holds controlling stakes in lithium producer Lakkor Resources and shares in other Tibet-based companies, including Yulong Copper and Tianyuan Mining.
The potential takeover aligns with Zijin’s broader strategy to strengthen its presence in battery metals like lithium and copper, both critical for electric vehicle (EV) production.
The company has actively expanded its lithium portfolio, acquiring assets such as Neo Lithium in Canada, focused on lithium mining in Argentina, and majority stakes in the Lakkor Tso Lithium Salar mine and Xiangyuan lithium mine in China.
Zijin is also constructing lithium iron phosphate plants for EV battery cathodes and has delayed some projects in Argentina and Tibet until 2025 due to permitting issues and declining lithium prices.
Nevertheless, the company aims to commence production at its first lithium exploration project in the Democratic Republic of Congo next year.
In addition to its focus on battery metals, Zijin has strengthened its portfolio in precious and base metals. Recent acquisitions include the Akyem gold mine in Ghana, a majority stake in Rosebel gold mines in Suriname, the La Arena copper-gold mine in Peru, and an indirect interest in the Koné gold project in Côte d’Ivoire.
This acquisition would reinforce Zijin’s position as one of China’s leading mining companies and enhance its role in global energy transition efforts.
By leveraging Zangge Mining’s assets and its own extensive portfolio, Zijin continues to cement its influence in critical and precious metals markets worldwide.
