Zijin Mining Group plans to begin lithium production at the Manono project in the Democratic Republic of Congo in early 2026, despite ongoing legal disputes with AVZ Minerals Ltd. The initiative capitalizes on one of the largest lithium deposits globally, amidst fluctuating lithium prices and increasing demand driven by battery markets. The project could establish Congo as a new hub for lithium production.
China’s Zijin Mining Group Co. is poised to commence lithium production at the Manono project in the Democratic Republic of Congo by early 2026. This initiative involves a significant deposit of lithium, which is critical for battery manufacturing. Despite an ongoing dispute with AVZ Minerals Ltd., which claims rights to the area, Zijin continues to move forward with the development of this asset. The project, once operational, will mark Congo’s inaugural lithium mine, leveraging the country’s abundant resources, which include being a leading source of cobalt and copper.
Zijin, which has a global presence in copper, gold, lithium, and zinc mining, received a full mining license for the Manono site four months ago. The project possesses a notable lithium oxide grade of 1.51%, making it a potentially lucrative venture. Although lithium prices have recently declined, Zijin is betting on future demand growth driven by the energy vehicle and storage industries. The company’s operations in Africa signify a strategic push for sourcing lithium amid global market fluctuations.
AVZ Minerals, currently embroiled in legal challenges, contends that the Congolese government acted unlawfully by reallocating its mining rights to Zijin. They assert that arbitration proceedings have been initiated to contest these allegations and to halt development activities in disputed areas. AVZ has also faced scrutiny regarding alleged bribery connected to the lithium project, although it has denied any involvement.
As Zijin advances with the mine’s establishment, it plans to begin by producing lithium concentrate and sulfate, with intentions of potentially expanding to additional refining capabilities as infrastructure, such as power supply, becomes reliable. The development of the Manono project is poised to contribute significantly to the global lithium supply chain, aligned with China’s increasing resource acquisition strategy in the region.
The Democratic Republic of Congo is known for its vast mineral wealth, particularly in copper and cobalt. The recent spike in demand for lithium, primarily driven by the electric vehicle market and renewable energy solutions, has prompted significant investment from companies around the world, especially from China. Zijin Mining Group Co. emerges as a key player in this landscape, planning to initiate lithium production from the Manono project amid various legal and corporate challenges with AVZ Minerals, an Australian company involved in exploration in the same region. The backdrop of fluctuating lithium prices has created a complex environment for stakeholders in the mining sector, raising questions about sustainability and future profitability.
In summary, Zijin Mining Group’s plans to launch lithium production in the Democratic Republic of Congo by early 2026 highlight the growing significance of lithium in the global market. Despite facing legal disputes with AVZ Minerals over mining rights, Zijin’s commitment to the Manono project underscores its strategic aim to capitalize on future lithium demand. The successful establishment of this mine could position Congo as a central player in the battery supply chain. Meanwhile, the ongoing legal and regulatory challenges present a complicated backdrop for the mining industry as it navigates the evolving landscape of commodity prices and international competition.
Original Source: financialpost.com
