China’s top miner Zijin Mining is again on the M&A warpath after revealing it’s in talks to acquire a major stake in its US$6.4 billion compatriot Zangge Mining, giving it full control of the Julong project in Tibet - China’s largest copper operation.
The takeover play is part of an aggressive global asset acquisition campaign that has already seen China’s largest mining company increase its footprint across lithium, copper and gold.
Zijin’s increased exposure to copper production will add to its recent spat of acquisitions of lithium operations in its strive to become a globally significant battery metals producer.
It recently purchased majority stakes in the Lakkor Tso mine, also in Tibet, the Xiangyuan mine in Hunan province, and Canadian miner Neo Lithium with its 20,000tpa Quebradas Tres project in Argentina.
A significant amount of feedstock from its projects is pegged to run through its under construction lithium iron phosphate (LFP) plant for cathodes used in electric vehicles.
LFP batteries are increasingly becoming the battery of choice with carmakers, due to largely Chinese-borne technological innovations that the nation’s government has just recently restricted the export of.
Find out more: Mission Critical: China's plan to choke lithium tech supply
Adding to the pile
Zijin is in talks with Zangge two largest shareholders to purchase 40% of the company, which has exposure to large undeveloped and operating copper, lithium and potash assets across the globe.
The state-backed global miner had already taken a controlling stake of Julong back in 2020 when it entered a JV with Zangge, which it subsequently brought online within 18 months.
And the deal, if ratified, will increase Zijin’s exposure in Tibet where it’s also developing the nearby 2.2 million tonne (mt) Zhunuo mine into a 100,000tpa copper operation.
It’s also been making a further foray into bullion overseas, acquiring the Aykem gold operation in Ghana, a majority stake in Suriname’s Rosebel mines, an interest in Côte d’Ivoire’s Kone project and the La Arena copper-gold mine in Peru.
Zijin says it will also start producing from the disputed Manono lithium mine next year, which the company and Australia’s AVZ Minerals are currently in arbitration over.
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