Zijin Mining Group plans to start lithium production in early 2026 at the Manono site in the DRC, one of the world’s largest lithium deposits. The project faces legal challenges from AVZ Minerals, claiming rights to the site. Despite price volatility in the lithium market, Zijin’s investment reflects a long-term strategy to capitalize on emerging demands in the electric vehicle and energy storage sectors.
Zijin Mining Group, a major Chinese mining company, has announced plans to commence lithium production in the Democratic Republic of Congo (DRC) in early 2026. This initiative will tap into one of the largest lithium deposits globally, specifically the Manono project, despite ongoing legal disputes with AVZ Minerals, an Australian firm claiming rights to this mineral-rich site. With the production anticipated to start in the first quarter of 2026, Zijin aims to position itself as a leader in the lithium market.
Although AVZ has initiated arbitration against both Zijin and the DRC government over the disputed exploration license, Zijin remains optimistic about the project, citing compliance with local laws and regulations. This ambitious project reflects the growing interest and investment from Chinese entities in Africa’s lithium resources, despite recent fluctuations in market prices. Zijin intends to produce lithium concentrate and sulfate, potentially expanding towards additional refining operations when reliable power sources are secured.
The Manono site features an average lithium oxide grade of 1.51%, suggesting that the asset will remain profitable notwithstanding the current slump in prices. Additionally, Zijin’s strategic push into Africa is part of a broader trend among Chinese companies to solidify their positions in the lithium supply chain, anticipating increases in demand from the rapidly growing electric vehicle and energy storage sectors over time.
The situation remains complex given the allegations of legal misconduct by AVZ and the implications for the mining industry in the DRC. Nonetheless, Zijin’s commitment to proceeding with development at the Manono project reflects confidence in its potential market viability and commitment to operational expansion.
Zijin Mining Group is a prominent player in the global mining sector, with a focus on metals such as gold, copper, and lithium. The lithium industry has gained significant attention due to the increasing demand for lithium-ion batteries, primarily driven by the growth of electric vehicles and renewable energy storage. The Democratic Republic of Congo, rich in mineral resources, presents lucrative opportunities for companies like Zijin; however, it often entails navigating complex legal and regulatory landscapes due to several ongoing disputes over mineral rights and licenses, notably with firms such as AVZ Minerals. As prices for lithium experienced drastic fluctuations in recent years, companies continue to invest strategically in this sector, anticipating future growth despite short-term supply challenges.
In summary, Zijin Mining Group’s planned lithium production at the Manono site in the DRC marks a significant step in the company’s expansion into critical global markets. The legal disputes with AVZ Minerals highlight the complexities of resource extraction in Africa. Nevertheless, Zijin’s commitment to compliance and development in the face of adversity reflects a proactive approach to securing its position in the lithium sector. As demand for lithium continues to rise, Zijin’s initiative may play a vital role in meeting future market needs while potentially setting industry benchmarks for successful conflict resolution and operational management in contested areas.
Original Source: www.miningweekly.com
