Zijin Mining Group Co. plans to begin lithium production in the Democratic Republic of Congo in early 2026, focusing on the Manono project. Amid legal disputes with AVZ Minerals over mining rights, Zijin aims to establish the first operational lithium mine in the DRC, driven by strong future demand predictions in the energy sector. The company prioritizes compliance with local regulations while progressing with its objectives, despite a challenging market backdrop.
Zijin Mining Group Co., a prominent Chinese mining firm, is set to launch lithium production in the Democratic Republic of Congo (DRC) by the first quarter of 2026. This initiative centers around the Manono project, which is recognized as one of the largest lithium deposits globally. Amid ongoing legal disputes with AVZ Minerals Ltd., Zijin aims to establish itself as the first operational lithium mine in the DRC, amidst increasing investments by Chinese firms in African lithium resources. Legal complexities surrounding the project are intertwined with arbitration proceedings initiated by AVZ, which claims illegal action by the DRC government in awarding mining rights. Although the current lithium market faces a supply glut, Zijin expresses confidence in future demand driven by the electric vehicle sector and energy storage industries. The company’s commitment to compliance with local regulations underscores its intentions for the Manono site, where it plans to produce lithium concentrate and sulfate, with potential to expand refining capabilities as infrastructure develops.
Furthermore, Zijin holds interests in various mineral resources, including significant stakes in copper mines within the DRC. As Zijin proceeds with the development of the Manono project, the outcome of ongoing legal disputes and the global market landscape will significantly influence the trajectory of this venture.
The Democratic Republic of Congo is known for its substantial natural resource wealth, particularly in minerals like copper and cobalt. Recently, the focus has shifted to lithium due to increasing global demand linked to electric vehicles and energy storage solutions. Chinese firms, including Zijin Mining, are actively securing lithium resources across Africa to maintain a competitive supply chain for their domestic market. Amid this backdrop, the Manono lithium project has emerged under contentious legal circumstances involving a rival Australian company, AVZ Minerals, which has raised concerns over the legitimacy of the Congolese government’s actions regarding mineral rights. Zijin’s involvement in the project is indicative of a broader trend of foreign investments aimed at tapping into Africa’s rich lithium deposits, despite fluctuations in market prices. The future of this project holds significant implications for both local economic development and the global lithium supply chain.
In summary, Zijin Mining Group’s plan to commence lithium production in the Democratic Republic of Congo by early 2026 marks a significant development in the global lithium landscape. While the project has motivated considerable investment, it is currently overshadowed by ongoing legal disputes regarding mining rights. As Zijin anticipates demand growth for lithium, especially in the electric vehicle market, the successful launch of the Manono project may contribute positively to both the company and the region’s economy, notwithstanding the prevailing complexities in the regulatory environment.
Original Source: financialpost.com
