Zijin Mining Group plans to begin lithium production in the Democratic Republic of Congo by early 2026, targeting the Manono project amid legal disputes with AVZ Minerals. The initiative reflects the company’s investment strategy following a significant price drop in lithium, eyeing future demand driven by electric vehicles and the energy sector. The project boasts a substantial lithium oxide grade, raising expectations of profitability despite current market conditions.
China’s Zijin Mining Group Co. is set to commence lithium production in the Democratic Republic of Congo from the first quarter of 2026, targeting one of the world’s largest lithium deposits. This development is poised to position the Manono project as the inaugural lithium mine within the country, which is a major producer of copper and cobalt. However, the project faces legal challenges from AVZ Minerals Ltd., which is seeking to recover its exploration license through arbitration following the government’s decision to grant Zijin a mining license in an area already claimed by AVZ.
Zijin is heavily investing in Africa’s lithium sector despite the recent price decline, which had seen lithium prices plummet almost 90% from their peak in 2022. The company anticipates heightened demand for lithium owing to the rapidly expanding energy vehicle and energy storage markets. As Zijin prepares for production, it also plans for incremental development in refining capabilities at Manono based on the availability of reliable power sources. The project boasts a significant average grade of 1.51% lithium oxide, which could render it profitable even in the current market conditions. Furthermore, Zijin’s legal compliance and actions in the Congo indicate its commitment to progressing with the project, while ongoing developments could influence future operations significantly.
The Democratic Republic of Congo is recognized as a significant global source of essential minerals, including cobalt and copper, which are critical to various industries, particularly electronics and energy storage. As the demand for lithium, a key component in batteries, continues to rise due to the adoption of electric vehicles and renewable energy solutions, investments in lithium mining have surged. Zijin Mining Group Co., a notable player in the global mining sector, is aiming to capitalize on the plentiful lithium resources present in Congo, where it has secured a mining license for a region contested by AVZ Minerals. This controversy highlights the increasingly competitive nature of resource extraction in Africa, where international companies are keen on securing valuable mineral deposits amidst fluctuating global prices.
In summary, Zijin Mining Group is aggressively pursuing lithium production in the Congo, potentially becoming the first company to operate a lithium mine in the region by early 2026. Despite facing legal disputes with AVZ Minerals over territorial claims, Zijin’s investment aligns with a broader trend of Chinese firms securing resources in Africa. The project not only promises significant economic opportunities but also reflects the ongoing demand for lithium driven by advancements in technology and sustainable energy initiatives. As the situation unfolds, the implications for both companies and the Congolese government will be critically monitored.
Original Source: financialpost.com
