Zangge Mining Secures Approval for Strategic Tibetan Lithium Carbonate Project

The Mamicuo Salt Lake Lithium Project: Strategic Expansion for China's Lithium Industry

The Mamicuo Salt Lake lithium-boron ore mining project represents a significant step in China's strategic resource development, with Zangge Mining lithium carbonate project approval poised to transform the domestic lithium landscape. Located in Tibet's remote Gerze County, this project highlights China's push toward lithium self-sufficiency amid growing global competition for battery materials.

What is the Mamicuo Salt Lake Lithium Project?

The Mamicuo Salt Lake project stands as a landmark development in China's domestic lithium production capabilities, representing a comprehensive approach to resource utilization in one of the country's most strategic regions.

Project Overview and Location

The Mamicuo Salt Lake lithium-boron ore mining project is situated in Gerze County, Ngari Prefecture, Tibet, on the vast Tibetan Plateau. This remote location provides access to valuable salt lake brine resources that are increasingly central to China's mineral resource strategy. The project exemplifies China's focus on developing domestic lithium sources in geographically challenging but resource-rich regions.

The Tibetan Plateau, with its unique geological formation, offers ideal conditions for lithium-rich brine deposits that have formed over millions of years. These high-altitude salt lakes contain significant concentrations of lithium, boron, and other valuable minerals that can be extracted more cost-effectively than traditional hard-rock mining operations.

Investment Scale and Production Targets

The Mamicuo Salt Lake project represents a substantial financial commitment with far-reaching production goals:

• Total investment: 4.537 billion yuan (approximately $630 million USD), funded entirely through enterprise investment
• Annual production capacity: 50,000 metric tons of battery-grade lithium carbonate
• By-product recovery: 17,000 metric tons of borax through integrated boron element recovery
• Project lifespan: 33-year production service period (excluding the 2-year construction phase)

This production scale positions the project as a significant contributor to China's domestic lithium supply chain, with output equivalent to 5-7% of China's 2024 lithium production levels. The substantial investment reflects the strategic importance of securing lithium resources for China's new energy vehicle and energy storage sectors.

Technical Approach and Infrastructure

The project employs cutting-edge lithium extraction technology specifically tailored to the unique characteristics of Tibetan salt lake brines:

• Brine transportation: Direct pipeline systems transport raw brine to the processing plant, minimizing environmental impact compared to traditional transportation methods
• Extraction technology: "Continuous adsorption method + membrane-based impurity removal and concentration + one-step lithium precipitation" technical route
• Infrastructure components:
  • Brine intake pumping stations
  • Transportation pipeline networks
  • Pre-treatment adsorption units
  • Nanofiltration systems
  • Reverse osmosis units
  • Bipolar membrane electrodialysis units
  • Lithium precipitation MVR (Mechanical Vapor Recompression) units
  • Finished product warehousing
  • Auxiliary production facilities

This technical approach represents a significant advancement over traditional solar evaporation methods used in many lithium brine operations. The continuous adsorption technology allows for year-round production regardless of weather conditions, while the membrane-based systems achieve higher purity levels with lower energy consumption.

Zangge Mining has reported cultivating over 100 technical personnel specifically for the Mamicuo project, creating a specialized workforce with capabilities that meet the project's requirements. This investment in human capital ensures rapid deployment of technical expertise when the project launches and provides a solid foundation for operational optimization.

Why is This Project Significant for China's Lithium Industry?

The Mamicuo Salt Lake project represents a pivotal development in China's strategic approach to critical mineral resources, with implications extending beyond mere production numbers.

Strategic Resource Development

The Mamicuo project emerges at a critical juncture in global lithium market dynamics:

• It represents China's continued push to secure domestic lithium resources amid intensifying international competition
• Prior to 2025, China relied on imports for approximately 70% of its lithium requirements, creating supply chain vulnerabilities
• The project helps reduce China's dependence on lithium imports from Australia, Chile, and other major producers
• It establishes greater Chinese control over the lithium supply chain critical for electric vehicle and energy storage production

The project's approval follows China's broader national strategy to enhance resource security for critical minerals, particularly those essential to the new energy transition. By developing domestic lithium sources, China aims to insulate its rapidly growing battery industry from international supply disruptions and price volatility.

Technical Innovation in Lithium Extraction

The project showcases China's advancement in lithium extraction technologies, particularly for salt lake brine resources:

• The continuous adsorption method represents a significant improvement over traditional solar evaporation techniques, which are weather-dependent and require large land areas
• Advanced membrane filtration systems enable higher recovery rates and better impurity management than conventional processes
• The one-step lithium precipitation approach reduces processing time and improves product consistency
• Integrated boron recovery demonstrates efficient multi-element extraction, improving overall resource utilization

These technical innovations offer several advantages:

"The project's integrated adsorption-membrane technology allows for processing efficiency significantly higher than traditional methods, with reduced water consumption and environmental footprint," notes industry analysts familiar with the project specifications.

The technology also enables year-round production regardless of seasonal conditions, a significant advantage in the high-altitude Tibetan environment where traditional solar evaporation would be limited by climate factors.

Workforce Development and Technical Expertise

Zangge Mining's investment in human capital represents a critical component of the project's strategic importance:

• Over 100 technical personnel have been specifically trained for the Mamicuo project
• This specialized workforce development ensures:
  • Rapid deployment of technical expertise when the project launches
  • Seamless integration of personnel into operational roles
  • A solid technical foundation for project execution and optimization

This focus on technical capability development aligns with China's broader goals of building domestic expertise in advanced mineral processing, reducing reliance on foreign technical know-how for critical resource projects.

How Does Zijin Mining's Acquisition Impact the Project?

The recent acquisition of Zangge Mining by Zijin Mining creates significant new dynamics for the Mamicuo Salt Lake project, transforming both its operational context and strategic positioning.

Acquisition Details and Strategic Rationale

In May 2025, Zijin Mining completed a transformative acquisition of Zangge Mining through its wholly-owned subsidiary, Zijin International Holdings:

• Acquisition scale: Purchased 392 million shares (24.98% stake) for 13.729 billion yuan
• Total control: 411 million shares (26.18% of total share capital) when including shares held by concert parties
• Controlling interest: Transitioned from Zangge Venture Capital to Zijin International Holdings
• Change in actual controller: From Xiao Yongming to the Finance Bureau of Shanghang County, Longyan City, Fujian Province

This acquisition represents one of the largest mining sector transactions in China's recent history, demonstrating Zijin Mining's strategic commitment to expanding its new energy materials portfolio.

Strategic Benefits for Zijin Mining

The acquisition provides Zijin Mining with multiple strategic advantages that extend beyond the Mamicuo project itself:

• Resource integration: Consolidation of high-quality mineral assets between publicly listed companies
• Portfolio expansion: Addition of a new mining-related publicly listed firm to complement existing operations
• Financial optimization: Potential reduction in overall asset-liability ratio through strategic restructuring
• Reserve enhancement: Significant addition to copper and lithium resource holdings
• Strategic materials: Acquisition of potassium reserves important for national food security
• Operational control: Absolute control over the Julong Copper Mine, improving efficiency and coordination
• Technological synergy: Leveraging of Zangge Mining's salt lake development experience and low-cost lithium extraction technology

As Zijin Mining stated following the acquisition: "This transaction is conducive to integrating high-quality resources among publicly listed firms and adding a mining-related publicly listed company to the group's portfolio, which may help reduce the overall asset-liability ratio."

The acquisition aligns with Zijin Mining's strategy to position itself as a comprehensive player across traditional and new energy minerals, creating synergies between its conventional mining operations and emerging battery material assets.

Synergies in Lithium Development

The acquisition creates substantial potential synergies for lithium resource development across multiple projects:

• Regional collaboration: Efficient coordination between both companies on salt lake projects in Tibet
• Accelerated development: Faster advancement of Zijin Mining's "two lakes and two mines" lithium projects
• Technical integration: Sharing of expertise in brine processing and mineral extraction
• Resource optimization: Streamlined allocation of capital and equipment across multiple projects

The combination of Zangge Mining's operational experience in salt lake lithium extraction with Zijin Mining's global mining expertise and financial resources creates a powerful platform for accelerated project development. This integration is expected to enhance the efficiency and effectiveness of the Mamicuo Salt Lake project implementation.

What is Zangge Mining's Background and Performance?

Understanding Zangge Mining's history and operational track record provides essential context for evaluating the Mamicuo Salt Lake project's potential success.

Company History and Focus

Established in 2002, Zangge Mining has built its reputation as a specialist in Qinghai-Tibet Plateau mineral resources:

• The company's core operations center on the 724-square-kilometer Qarhan salt lake resources
• Its primary focus has been the development and utilization of strategic mineral resources, particularly potash and lithium chemicals
• Main business activities include potassium chloride and lithium carbonate production
• Products find applications across diverse sectors:
  • Agricultural fertilizers (potassium chloride)
  • New energy vehicles (lithium carbonate)
  • Energy storage systems (lithium carbonate)
  • Consumer electronics (lithium carbonate)

Over two decades, the company has developed specialized expertise in salt lake brine extraction and processing, establishing itself as a leader in China's lithium brine sector. This experience provides a solid foundation for the Mamicuo Salt Lake development.

Recent Performance Metrics

According to Zangge Mining's Q1 2025 financial report, the company has experienced mixed performance across its business segments:

• Lithium carbonate production: 2,165 metric tons (9.24% decrease year-over-year)
• Lithium carbonate sales: 1,530 metric tons (61.46% decrease year-over-year)
• Associated company performance:
  • Julong Copper production: 46,400 metric tons (9.94% increase year-over-year)
  • Julong Copper sales: 46,400 metric tons (16.95% increase year-over-year)
• Investment income: 610 million yuan

The significant decrease in lithium carbonate sales reflects broader market challenges in the lithium sector, including price volatility and changing supply-demand dynamics. However, the strong performance of the company's copper interests through Julong Copper demonstrates portfolio diversification benefits.

Strategic Investments and Partnerships

Beyond its core operations in salt lake mineral extraction, Zangge Mining has strategically diversified through key investments:

• Julong Copper stake: 30.78% ownership, providing significant copper exposure
• This investment creates natural synergies with Zijin Mining's copper interests
• The partnership demonstrates Zangge's strategy of expanding beyond lithium into other strategic metals

This diversification approach has proven valuable in balancing the company's exposure to lithium market volatility, with copper operations providing more stable revenue streams during periods of lithium price fluctuation.

What is Zijin Mining's Profile and Global Footprint?

As the new controlling shareholder of Zangge Mining, Zijin Mining brings extensive global mining experience and substantial resources to the Mamicuo Salt Lake project.

Company Overview and Core Business

Zijin Mining operates as a large multinational mining group with diverse mineral interests:

• Core activities: Exploration, development, and engineering design of metal mineral resources
• Research focus: Technological application research for copper, gold, zinc, lithium, silver, and molybdenum
• Global reach: Mining investments across 17 Chinese provinces and 17 countries internationally
• Corporate structure: Publicly listed company with state-linked ownership (Finance Bureau of Shanghang County as actual controller)

The company has evolved from its origins as a gold producer to become one of China's most internationally active mining enterprises, with a growing focus on battery materials in recent years.

Major Mining Assets

Zijin Mining's portfolio includes significant mining projects across multiple continents:

Domestic Projects:

• Tibet: Julong Copper Mine and Junuo Copper Mine
• Heilongjiang: Duobaoshan-Tongshan Copper Mine
• Fujian: Zijinshan Copper-Gold Mine
• Additional regions: Operations in Shanxi, Guizhou, and Longnan

International Projects:

• Serbia: Čukaru Peki Copper-Gold Mine and Bor Copper Mine
• Democratic Republic of Congo: Kamoa-Kakula Copper Mine and Kolwezi Copper Mine
• Suriname: Rosebel Gold Mine
• Colombia: Buriticá Gold Mine

This diverse portfolio demonstrates Zijin Mining's capability to operate complex mining projects across various geological settings and regulatory environments, experience that can benefit the Mamicuo Salt Lake development.

New Energy and Materials Focus

In recent years, Zijin Mining has accelerated its entry into the new energy materials sector through strategic lithium investments:

• Argentina: 3Q Salt Lake Lithium Mine, which offers valuable lithium brine market insights
• Tibet: Lakkor Tso Salt Lake Lithium Mine
• Hunan Province: Xiangyuan Hard Rock Lithium Polymetallic Mine
• Democratic Republic of Congo: Development leadership of the northeastern project of the Manono Lithium Mine

This strategic pivot toward lithium assets reflects Zijin Mining's recognition of the critical importance of battery materials in the global energy transition. The Mamicuo Salt Lake project complements these existing lithium investments, creating potential operational synergies.

Resource Holdings

As of late 2024, Zijin Mining controls an impressive portfolio of mineral resources globally:

Note: Resources include proven, controlled, and inferred resources based on 100% stake in controlled enterprises and equity interest in associated/jointly controlled enterprises.

This substantial resource base positions Zijin Mining as one of China's most resource-rich mining companies, with particular strength in copper and an increasingly significant position in lithium.

What are the Market Implications of This Project?

The Mamicuo Salt Lake project's development occurs at a pivotal moment in global lithium market dynamics, with significant implications for both Chinese and international supply chains.

Impact on China's Lithium Supply Chain

The Mamicuo Salt Lake project will significantly influence China's domestic lithium supply landscape:

• Production capacity: Adding 50,000 metric tons of annual battery-grade lithium carbonate production
• Supply diversification: Reducing dependence on lithium imports from Australia, Chile, and other major producers
• Vertical integration: Strengthening connections between domestic lithium resources and China's battery manufacturing ecosystem
• Pricing dynamics: Potentially stabilizing domestic lithium carbonate pricing through increased local supply

The project represents a significant step toward greater self-sufficiency in critical battery materials for China, which has historically relied heavily on imports to meet its growing lithium demand. By developing domestic resources like the Mamicuo Salt Lake, China aims to reduce supply chain vulnerabilities and price volatility.

The integration of this new production capacity into China's battery supply chain will likely create advantages for domestic battery manufacturers, who can benefit from more reliable material sourcing and potentially more competitive pricing compared to international competitors.

Global Lithium Market Considerations

The project's development occurs within a complex global lithium market context:

• Demand growth: Rising global lithium requirements driven by accelerating electric vehicle adoption and energy storage deployment
• Strategic competition: Increasing rivalry among major economies for control of lithium resources and processing capacity
• Supply chain positioning: Strategic moves by Chinese companies to secure positions throughout global lithium supply chains
• Market influence: Potential effects on global lithium pricing and trade flows as China reduces import dependence

The development of projects like Mamicuo Salt Lake reflects China's strategic approach to securing critical mineral resources needed for its energy transition and manufacturing ambitions. This approach includes both domestic resource development and international acquisitions, creating a comprehensive strategy for lithium supply security.

For global markets, the increased domestic production in China may reduce Chinese buying pressure on international lithium sources, potentially affecting pricing dynamics for producers in Australia, South America, and Africa. Furthermore, the project represents important lithium industry innovations that coul

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