Zijin Mining Group plans to start lithium production in Congo’s Manono project by early 2026, amid a legal dispute with Australia’s AVZ Minerals regarding mining rights. Despite a significant drop in lithium prices, Chinese investments in African lithium are increasing, driven by future demand projections for battery metals.
Zijin Mining Group of China has announced its intentions to commence lithium production at the Manono project in the Democratic Republic of Congo (DRC) by early 2026. This project, located in southeast Congo, is one of the largest lithium reserves globally. However, it is currently the subject of a legal dispute, as Australia’s AVZ Minerals asserts its claims and has initiated arbitration proceedings against both the DRC government and Zijin for recovery of its exploration licence. If successful, Zijin would establish the first operational lithium mine in Congo, a country noted for its significant copper and cobalt production.
Despite a steep decline in lithium prices—dropping nearly 90% from their peak in 2022—Chinese enterprises, including Zijin, are significantly investing in African lithium resources, spanning from Mali to Zimbabwe. These investments are driven by the need to secure raw materials for domestic refineries, anticipating increased future demand amid the global shift towards new energy vehicles and enhanced energy storage solutions. According to Zijin, while a supply surplus is expected to persist short-term, there remains potential for long-term demand growth, particularly from the renewable energy sector.
The Manono project, which Zijin is developing in collaboration with the Congolese government, received a full mining licence four months ago. This venture promises a substantial resource base, with Zijin reporting an average lithium oxide grade of 1.51%. Zijin Mining operates numerous mines around the world, focusing on copper, gold, lithium, and zinc.
The Democratic Republic of Congo is emerging as a pivotal player in the global lithium market. With its vast mineral deposits, particularly in lithium, which is essential for battery manufacturing, the DRC is drawing increasing foreign investment. In this context, Chinese companies have been active in securing mining rights and developing resources, especially in light of the anticipated growth in demand for electric vehicles and renewable energy technologies. The Manono project specifically highlights the tension between multinational mining companies and local firms regarding resource claims, emphasizing the complexities of legal and operational challenges in African mining.
In summary, Zijin Mining Group is poised to initiate lithium production at the Manono project in early 2026 amid existing legal disputes over mining rights. This venture symbolizes the ongoing trend of Chinese investment in Africa’s lithium resources despite market fluctuations. The anticipated demand for lithium in the context of rising global energy needs supports Zijin’s strategic focus while underscoring the challenges faced by companies in this evolving sector.
Original Source: www.scmp.com
