Zijin Mining Group (HKEX:2899, SHA:601899, OTCPL:ZIJMF) plans to restart production at its Manono lithium project in Congo in June, adding a key source of the battery metal amid tight supply.
The Chinese miner plans to commission its Manono project in June, with production expected to reach the equivalent of 130,000 tonnes of lithium carbonate annually at full capacity. company report Released on 20 March.
This would make the operation among the largest hard-rock lithium assets globally, with only a handful of Australian mines producing more.
According to CRU Group, at expected peak production around 2028, Manono could account for about 5 percent of global mined lithium supply.
Based on estimates, Zijin’s operations are expected to produce 850,000 to 875,000 tonnes of lithium concentrate annually at full capacity. The company is also building a processing facility that will convert about 500,000 tons of concentrate per year into lithium sulphate, an intermediate used in battery production.
This mine is being developed at a cost of approximately US$1.4 billion. Zijin owns about 55 percent of the project, with the Congolese state holding the remainder.
The scale of the project makes it a significant addition to a market increasingly defined by supply concentration and geopolitical competition. Lithium is a key input for electric vehicles and energy storage, and new large-scale projects are limited.
The timing of Manono’s ramp-up is noteworthy. Zimbabwe, one of Africa’s largest lithium producers, has restricted exports of lithium concentrate, tightening near-term supplies.
The project also highlights China’s strong position in global critical minerals supply chains. Congo has become central to that strategy, with Chinese companies dominating copper and cobalt production and expanding into lithium.
However, ownership of the property remains in dispute. AVZ Minerals of Australia (ASX:AVZ) keeps demanding rights has launched arbitration proceedings against the Congolese government after its license was revoked and Zijin was partially reassigned.
The southern part of the deposit has also attracted interest from US-backed exploration firm Kobold Metals, backed by investors including Bill Gates and Marc Andreessen.
during a January meeting Last month at the White House, US officials encouraged AVZ to sell its stake in Manono to an American company. The pressure comes as the administration seeks to reduce China’s lead in supply chains related to electrification, defense and advanced manufacturing.
A mineral partnership The agreement signed between Washington and Kinshasa in December aims to support that effort, although Chinese companies retain a significant lead.
Apart from lithium, Zijin is also expanding its expansion into other strategic metals. According to Lisa Liu, managing director of Gold Mountain Asset Management, the unit that manages Zijin’s financial portfolio, the company is evaluating investments in tungsten and uranium.
“We are looking to expand our positions in tungsten and other strategic metals, including uranium.” Liu told Bloomberg.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
