Zijin Mining Group to Commence Lithium Production in Congo by 2026

Zijin Mining Group Co. plans to begin lithium production in early 2026 at the Manono project in the Democratic Republic of Congo. The project, which is embroiled in legal disputes with AVZ Minerals Ltd., aims to be the first operational lithium mine in the country. Despite ongoing arbitration and market fluctuations, Zijin is focused on compliance and progressing with project development.

The Zijin Mining Group Co. of China is set to initiate lithium production in the Democratic Republic of Congo starting from early 2026. This development will take place at one of the world’s largest lithium deposits, located in the southeastern region of Congo, an area still claimed by AVZ Minerals Ltd. Despite ongoing arbitration concerning exploration rights, Zijin is aiming for the Manono project to be the first operational lithium mine in the Democratic Republic of Congo, a country that ranks high in copper and cobalt production. The current rise in demand for lithium within the new energy vehicle sector amidst anticipated future consumption growth is driving investment from Chinese firms into lithium-rich areas across Africa, despite fluctuations in commodity prices.

In a strategic partnership with the Congolese government, Zijin was granted a full mining license for the Manono site four months ago. Notably, the project boasts a significant lithium oxide grade of 1.51%. Furthermore, AVZ has raised concerns over legal violations related to permit seizures and ongoing arbitration processes, which may affect the development timeline. Zijin remains focused on compliance and progress despite these hurdles.

Lithium has emerged as a critical resource, primarily due to its central role in battery production for electric vehicles and energy storage systems. With global demand projected to increase, significant investments in lithium extraction projects are being made, particularly across Africa, where substantial deposits exist. The Democratic Republic of Congo, known for its mineral wealth, including copper and cobalt, stands as a focal point for mining enterprises aiming to secure necessary lithium supplies for future energy needs. The complexities of exploration and extraction rights, alongside ongoing regulatory and legal challenges, are key factors influencing operations in this sector.

Zijin Mining Group Co. is strategically positioned to lead lithium production in the Democratic Republic of Congo, targeting the commencement of operations in early 2026 at the Manono project. The legal challenges posed by AVZ Minerals and the complex regulatory environment underscore the challenges facing mining ventures in this region. Nonetheless, Zijin’s commitments, backed by significant investments in exploration and infrastructure, position the company to navigate these challenges effectively and contribute substantially to the growing lithium market.

Original Source: financialpost.com