Zijin Mining Group plans to begin lithium production in early 2026 at the Manono project in the Democratic Republic of Congo, amidst claims from Australia’s AVZ Minerals, which is pursuing arbitration. This site will become the first operational lithium mine in Congo. Despite a recent drop in lithium prices, Chinese investments in Africa’s resources continue, driven by expectations of rising demand from the energy sector.
Zijin Mining Group, a prominent Chinese mining enterprise, has announced plans to commence lithium production at the Manono project in the Democratic Republic of Congo early in 2026. This project, which is purportedly one of the largest lithium deposits globally, is also subject to competing claims from Australia’s AVZ Minerals, which has instituted arbitration against both the Congolese government and Zijin to reclaim its exploration rights. Once operational, this mine will be the first of its kind in Congo, a country noted for being the second-largest producer of copper and the primary source of cobalt worldwide.
Despite the recent downturn in lithium prices, which have plummeted nearly 90% since their peak in 2022, Zijin and other Chinese companies are actively pursuing investments in Africa’s burgeoning lithium sector. They aim to secure essential raw materials for domestic refineries, anticipating a significant upsurge in lithium demand as the new energy vehicle and energy storage markets expand.
Zijin has expressed optimism regarding the long-term prospects of lithium demand, citing that while a current supply surplus may persist, there remains an opportunity for growth in the related industries. In recent months, Zijin secured a full mining license for the Manono project, indicating that this venture is progressing under a joint operation with the Congolese state. With an average lithium oxide grade of 1.51%, the asset is considered significant in size. The company also operates other lithium projects in nations such as China and Argentina, diversifying its portfolio across multiple continents.
Zijin Mining Group is part of a broader trend involving substantial Chinese investments in African mining resources, particularly lithium. This investment strategy is emerging despite significant fluctuations in lithium prices, as companies prepare for anticipated future consumption growth stemming from global energy transitions. The Democratic Republic of Congo, hosting vast mineral wealth, presents an appealing opportunity for lithium extraction amid competitive opportunities contested by international firms such as AVZ Minerals.
In conclusion, Zijin Mining Group is strategically positioning itself to lead lithium production in the Democratic Republic of Congo by 2026, despite ongoing disputes over exploration rights with AVZ Minerals. This development reflects Chinese companies’ commitment to securing essential battery metals, anticipating future growth in demand driven by sustainable energy technologies. The Manono project not only symbolizes a significant investment in lithium resources but also underscores the competitive landscape characterizing Africa’s mining sector.
Original Source: www.scmp.com
