Zijin in talks to buy $6bn China lithium producer
Zijin Mining Group, one of China’s most acquisitive miners, says it’s in discussions to buy shares and potentially to take over Zangge Mining a lithium and potash producer.
Zijin is in talks with the owners of Zangge that “may result in a change in control” of the firm, it said in a statement to the Hong Kong Exchange. The target is based in Qinghai, a mineral-rich region in the west of China, and has a market value of 46.6-billion yuan ($6.4-billion) on the Shenzhen Stock Exchange.
Boosting lithium output has become a key strategic goal for Zijin, a major global producer of copper and gold. It’s already exploring for the electric vehicle battery metal in China and Argentina, and aims to start output in the Democratic Republic of Congo from 2026.
Prices for lithium have crashed nearly 90% from a peak in late 2022. That’s resulted in a drop in share values across miners, helping to fuel a surge of deals activity.
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