Zijin Mining announced on Friday that it is in negotiations with the two largest shareholders of Zangge Mining to acquire a controlling stake in the company.
The talks involve Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management, which together hold approximately 40% of the 46.63 billion yuan ($6.36 billion) mining company, according to LSEG data.
Should the deal go through, it would enable Zijin to strengthen its position in the Julong copper project in Tibet, a joint venture with Zangge Mining. Last year, Zijin secured government approval to significantly boost the Julong mine’s output to 350,000 metric tons per day, making it the largest copper mine in China.
The ongoing discussions also highlight Zijin’s strategic focus on tapping into the increasing demand for battery metals, as the company prepares to begin production at its first lithium exploration project in the Democratic Republic of Congo next year.
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