Zangge Mining primarily produces potash for fertilizer, but derives around a third of its revenue from lithium extraction. Its lithium operations focus on salt lake brines in Qinghai, China’s mineral-rich western region.
Zangge Mining reported production of 9,278 metric tons of lithium carbonate in the first nine months of 2024.
Zijin Mining, a producer of copper and gold, has been expanding aggressively, with Chairman Chen Jinghe overseeing its transformation from a gold miner in Southeastern China to a global leader in resource extraction.
Beyond China, Zijin Mining is also advancing lithium projects abroad.
The company’s strategic plan aims for annual production capacity of up to 300,000 metric tons of lithium by 2028. While its current output is limited, the acquisition of Zangge Mining could accelerate its progress toward that target.
Discussions are ongoing and are subject to agreement terms, board approval and regulatory compliance.
Zijin Mining’s interest in Zangge Mining is part of a trend toward lithium M&A activity.
Lithium remains a critical component in the transition to clean energy, and companies like Zijin Mining are leveraging their expertise in resource development to capture market opportunities.
The lithium market has experienced significant volatility since late 2022, with prices plummeting nearly 90 percent from their peak. However, this downturn in the industry has created opportunities for acquisitions as producers seek to consolidate and optimize operations amid weaker financial conditions.
By expanding its lithium footprint, Zijin Mining is positioning itself to play a key role in the global energy transition.
Zijin Mining is expected to release more details on the potential acquisition in the coming months.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Leave a Reply