Zijin Mining Group Co. plans to begin lithium production in the DRC at the Manono project by early 2026, targeting the first operational lithium mine in the country. This move comes amid ongoing legal disputes with AVZ Minerals over exploration permits and significant investments in Africa’s lithium resources despite recent price declines.
Zijin Mining Group Co. of China plans to commence lithium production in the Democratic Republic of Congo (DRC) by early next year, specifically from one of the world’s most significant lithium deposits. This endeavor is centered around the Manono project located in southeastern Congo, where Zijin’s activities have intensified despite legal claims from the Australian company, AVZ Minerals Ltd., which is currently pursuing arbitration against both the DRC government and Zijin to reclaim its exploration license.
The Manono project is projected to begin production in the first quarter of 2026, potentially marking it as the first operational lithium mine in Congo, a country known for being the second-largest copper producer and a leading cobalt source globally. Despite current low prices impacting the lithium market, Zijin and other Chinese firms are aggressively investing in Africa’s lithium resources to secure feedstock for domestic refineries in anticipation of future demand surges driven by the burgeoning electric vehicle and energy storage sectors.
Subsequent to the receipt of a full mining license four months prior, Zijin emphasizes that it is prioritizing the development of the Manono site, which boasts a noteworthy average lithium oxide grade of 1.51%. However, the legal fallout with AVZ continues, as the latter alleges the DRC unlawfully ceded their permit to Zijin. Compounding the issue, concerns about possible bribery linked to the project have arisen, prompting investigations by the Australian Federal Police. Notwithstanding these legal challenges, Zijin asserts compliance with all requisite laws and regulations in the DRC and plans to phase in the commissioning of its processing plant, initially focusing on lithium concentrate and sulfate production, with further refining contingent upon a steady power supply.
Zijin Mining Group Co., a major player in the mining sector, is expanding its operations into the Democratic Republic of Congo, a country rich in mineral resources, particularly lithium, a key component for batteries. The DRC is not only a significant producer of lithium but also holds the position of the second-largest copper producer and the top cobalt supplier in the world. In the context of the global shift towards renewable energy and electric vehicles, the demand for lithium is expected to surge, leading companies like Zijin to invest heavily in securing lithium resources in Africa despite ongoing market fluctuations and legal challenges with other stakeholders, such as AVZ Minerals Ltd. The Manono project serves as a strategic move for Zijin, positioning itself to meet future lithium demand while navigating competitive and potentially litigious international mining landscapes.
In summary, Zijin Mining Group Co.’s planned lithium production in Congo represents a significant development in the global lithium supply chain, particularly as the company aims for a 2026 start date at the Manono project. While Zijin confronts legal challenges from Avis Minerals over exploration rights, the firm remains committed to developing the site under the auspices of regulatory compliance. The actions of Chinese firms like Zijin highlight the strategic importance of African resources amidst a fluctuating market, as they seek to secure critical materials required for the future of energy storage and electric mobility.
Original Source: financialpost.com
