Zijin's lithium foray accelerates with proposal for 2.1-Mt Tibet mine

Zijin Mining Group Co. Ltd. proposed to acquire four assets from Dunan Holding Group Co. Ltd., including a 70% interest in a lithium mine in Tibet, for 7.68 billion Chinese yuan, Zijin said May 2.

The asset bundle includes Dunan's 100% stake in Zhejiang Jinshi Mining Co. Ltd. worth 4.90 billion yuan. Zhejiang Jinshi Mining holds 70% of Tibet Ngari Lakkor Resources Co. Ltd., which owns the Lakkor Tso Salt Lake lithium mine.

The mine is among the few large-scale and high-quality lithium salt lake deposits in the region, with retained resources of about 2.1 million tonnes of lithium carbonate, according to Zijin.

The deal is the latest in Zijin's foray into lithium, which is part of its development strategy amid rising demand for the metal used in batteries for electric vehicles. Zijin has historically held mostly gold and copper assets.

"Lithium is an important new energy metal and an important mineral that the company is developing vigorously. The fields of new energy and new materials are the company's strategic development directions," the company said.

The China-based mining company acquired Toronto-listed Neo Lithium Corp. and its 3Q lithium project in Argentina for C$6.50 per share, or about US$719.6 million.

The company also began a partnership and exploration to develop hard-rock lithium in the Democratic Republic of Congo.

Zijin owns over 9 million tonnes of lithium carbonate resources on an equity basis. It aims to achieve a production capacity of more than 50,000 tonnes of lithium carbonate by 2025.

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