Chinese mining giant Zijin Mining Group has made a strategic move to acquire a nearly 25% stake in fellow Chinese miner Zangge Mining for 13.7 billion yuan ($1.87 billion). The deal, which is expected to grant Zijin controlling rights in Zangge, further consolidates its growing influence in the global mining sector, especially in the copper and lithium industries.

Zangge Mining operates in the mineral-rich western region of Qinghai, China, and is heavily involved in the extraction of copper and other precious metals. This acquisition would not only enhance Zijin's stake in Zangge’s operations but also strengthen its control over the Julong copper project in Tibet, a significant joint venture between the two companies. The Julong mine is slated to become one of China’s largest single copper operations, with an ambitious expansion plan that will increase its output to around 350,000 tonnes per day. Once fully operational, the mine is expected to exceed 100 million tonnes of annual ore mining and processing capacity, cementing its status as a key asset in Zijin’s mining portfolio.

Zijin Mining, known for its aggressive expansion strategy, took control of the Julong project in 2020 and brought it online in just 18 months. The company has continued to strengthen its foothold in Tibet, having acquired other copper assets such as the Zhunuo copper mine in August 2023. This acquisition of a stake in Zangge is seen as part of a broader effort to solidify its presence in the region and boost its copper production capacity.

The deal also underscores Zijin’s broader strategy of acquiring lithium assets. In recent years, the state-backed miner has increasingly focused on securing resources critical for the electric vehicle (EV) industry. With global demand for lithium and copper on the rise due to the booming EV market, Zijin has been aggressively expanding its portfolio in battery metals. The company has secured stakes in several lithium projects worldwide, including Neo Lithium in Argentina, the Lakkor Tso Lithium Salar mine in Tibet, and the Xiangyuan lithium mine in Hunan Province, China. Additionally, Zijin is involved in the construction of facilities to produce lithium iron phosphate, a key material for EV batteries.

Despite some challenges, such as delays in projects in Argentina and Tibet due to permitting issues and weak lithium prices, Zijin remains optimistic about its growth prospects. The company has stated plans to begin production at its first lithium exploration project in the Democratic Republic of Congo (DRC) next year, further signaling its commitment to diversifying its resource base and capitalizing on the burgeoning EV metals market.