AsianFin -- Zijin Mining Group Co., one of China’s most acquisitive mining companies, has announced ongoing discussions to acquire shares and potentially take control of Zangge Mining Co. Ltd., a producer of lithium and potash.
In a statement to the Hong Kong Exchange, Zijin revealed it is negotiating with Zangge's shareholders in a deal that "may result in a change in control" of the company. Based in Qinghai, a mineral-rich province in western China, Zangge has a market valuation of 46.6 billion yuan ($6.4 billion) on the Shenzhen Stock Exchange.
As part of its strategic push to bolster lithium production, Zijin has been actively pursuing projects in China, Argentina, and the Democratic Republic of Congo, where it plans to begin lithium output by 2026. The move aligns with its broader goals as a leading global producer of copper and gold.
A sharp decline in lithium prices—down nearly 90% since their late 2022 peak—has significantly lowered miner valuations, spurring a wave of acquisition activity in the sector.
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