Zijin Mining Eyes Lithium Expansion with Potential Acquisition of Zangge Mining
China’s Zijin Mining Group Co. is advancing its presence in the global lithium market with ongoing talks to acquire a stake in Zangge Mining Co. Ltd., a move that could lead to a full takeover. Zijin disclosed the potential deal in a statement to the Hong Kong Exchange, signaling its continued expansion strategy beyond copper and gold into the booming battery metals sector.
Zangge Mining, headquartered in Qinghai province, has a market value of 46.6 billion yuan ($6.4 billion) on the Shenzhen Stock Exchange. While primarily a potash producer for fertilizer, Zangge derives about one-third of its revenue from lithium extraction from salt lakes in Qinghai. The company produced approximately 9,278 tons of lithium carbonate in the first nine months of 2024 and is pursuing additional brine projects in Tibet, where it partners with Zijin at the Julong copper mine.
The global lithium market has seen a sharp decline, with prices falling nearly 90% since late 2022. This downturn has spurred mergers and acquisitions, exemplified by Rio Tinto's $6.7 billion purchase of Arcadium Lithium Plc last year. Zijin’s interest in Zangge aligns with its strategy to ramp up lithium production to 300,000 tons by 2028, despite current modest output and project delays.
Zijin’s lithium ambitions have been tempered by market conditions and regulatory hurdles. The company postponed the startup of projects in Argentina and Tibet to 2025 and plans to begin production in the Democratic Republic of Congo by 2026. It also operates a hard-rock lithium mine in China’s Hunan province.
The potential Zangge deal could shift control of the company, Zijin noted, though any agreement remains subject to board approval and formal contracts.
