Chinese miner Zijin Mining confirmed on 10 January it is in discussions for a potential acquisition of Chinese lithium carbonate producer Zangge Mining, Kallanish reports.

In a filing to the Hong Kong stock exchange, Zijin says the acquisition may result in a change of control of Zangee Mining, though it would be subject to board approval and a definitive acquisition agreement.

Late on 9 January, Zangge Mining announced on the Shenzhen Stock Exchange it has recently received notices from its controlling shareholder Zangge Venture Capital and its concert party Lin Jifang, as well as the second largest shareholder Xinsha Hongyun Investment, that the relevant parties are planning to transfer shares. The total share transfer ratio is expected to account for 24.72% of Zangge Mining’s capital.  

Based on the closing price on 9 January, the market value of Zangge Mining is approximately CNY 46.6 billion ($6.4 billion). The value corresponding to a 24.72% stake exceeds CNY 11.5 billion.

“The counterparty of this transaction is Zijin Mining or its holding subsidiary,” Zangge Mining says in the statement. “Zangge Mining’s stock will be suspended since the opening of the market on the morning of 10 January, and the suspension is expected to last no more than two trading days.”

Zangge Mining was established in 1996 with a registered capital of CNY 1.58 billion. With 724 square kilometres of resources in the Qarhan Salt Lake, Zangge Mining focuses on lithium carbonate and potassium chloride.

In H1 2024, the company reported a nearly 30% year-on-year increase in its lithium carbonate production at 5,809 tonnes. Sales of the lithium chemical, critical to batteries, also rose 57% in the period.  

Zijin, meanwhile, is a large miner engaged in the extraction of gold, copper, lithium and other metals. The company has been boosting its lithium portfolio, targeting primarily a disputed project in the Democratic Republic of the Congo. It reportedly expects to start production at the Manono project in Q1 2026.