Zijin Mining Eyes Major Lithium and Potash Expansion with Zangge Acquisition

Zijin Mining

Zijin Mining, a leading Chinese diversified metals miner, is poised to significantly bolster its lithium and potash portfolio through the acquisition of a controlling stake in Zangge Mining. The deal, currently pending board approval and official signing, signals a major strategic move by Zijin to solidify its position in the rapidly growing battery materials market.

Strategic Acquisition to Enhance Lithium and Potash Market Dominance

• Zangge's Production Strength: Zangge Mining produced 1.09 million metric tonnes (t) of potassium chloride and 12,063t of lithium carbonate in 2023, with these commodities accounting for 62% and 38% of its revenue, respectively.

• Strategic Asset Base: Zangge extracts potash and lithium from the Chaerhan Salt Lake in Qinghai Province and holds strategic stakes in salt lakes in Tibet, including Manicuo, Jiezechaka, and Longmucuo, which are currently undergoing permitting and environmental approval processes.

• Zijin's Lithium Ambitions: This acquisition is a crucial step in Zijin's ambitious plan to achieve a lithium carbonate equivalent (LCE) capacity of 250,000-300,000t/yr by 2028. It will significantly enhance Zijin’s existing lithium assets, including the Laguocuo brine and Xiangyuan hard rock project in China, and the Tres Quebradas lithium project in Argentina. The company is also set to launch the Manono project in the Democratic Republic of Congo in 2026, further diversifying its global footprint.

• Market Impact: The acquisition underscores the increasing consolidation within the lithium and potash sectors, as companies seek to secure strategic resources to meet the growing demand for battery materials and fertilizers. Zijin’s move is expected to have a significant impact on the market, potentially influencing pricing and supply dynamics.