China’s Zijin Mining Group plans to begin lithium production at the Manono project in the DRC in early 2026, making it the first active lithium mine in the country. Despite a sharp decline in lithium prices, Zijin continues to invest in Africa’s resources, anticipating future demands from the electric vehicle and energy storage sectors. The project is contested by AVZ Minerals, which has initiated arbitration over its exploration rights.
Zijin Mining Group, a prominent Chinese mining company, is poised to commence lithium production from the substantial Manono project in the Democratic Republic of Congo (DRC) by early 2026. This project, situated in southeast Congo, is notable as it encompasses one of the largest lithium deposits globally. However, the site is contested by Australia’s AVZ Minerals, which has initiated arbitration to reclaim its exploration license from both the Congolese government and Zijin. The commencement of lithium extraction marks a significant step in establishing the first operational lithium mine in the DRC, which is already well-known as a major producer of copper and cobalt.
Amid a challenging market, wherein lithium prices have plummeted nearly 90% since their peak in 2022, Zijin’s strategic investments across Africa aim to secure vital lithium resources for its domestic refineries. Despite the current oversupply of lithium, Zijin emphasizes that the new energy vehicle and energy storage sectors demonstrate promising future demand, indicating the company’s confidence in long-term growth in this sector. Zijin holds full mining rights for the Manono project, which boasts an average lithium oxide grade of 1.51%. This initiative is part of a broader effort by Chinese companies to capitalize on Africa’s rich lithium resources, spanning from Mali to Zimbabwe.
The Democratic Republic of Congo is increasingly becoming a focal point for mining activities, particularly for lithium, given its vast mineral wealth which includes substantial lithium, copper, and cobalt reserves. The Manono project, in particular, has attracted attention due to its significant size and the presence of competing interests, notably from Australian firm AVZ Minerals. With the growing global demand for lithium, primarily propelled by the electric vehicle and renewable energy sectors, mining firms are redirecting focus towards this resource despite prevailing fluctuations in lithium prices. The collaboration between Zijin and the Congolese government further underscores the importance of international partnerships in harnessing mineral resources effectively.
In conclusion, Zijin Mining Group’s initiative to begin lithium production in the DRC underscores a strategic response to both regional competition and the burgeoning global demand for battery metals. While the company seeks to navigate the challenges posed by AVZ Minerals’ arbitration, the development of the Manono project is set to represent a critical milestone for the lithium mining sector in Congo. As Zijin moves ahead, the implications for local economies and international supply chains remain significant in the evolving landscape of mineral resources.
Original Source: www.scmp.com
