Zijin to Start DRC Lithium Mine Production in June

Zijin Mining Group (HKEX:2899,SHA:601899,OTCPL:ZIJMF) plans to start production at its Manono lithium project in the Democratic Republic of Congo (DRC) in June, adding a major source of the battery metal as supply tightens.

The Chinese miner plans to commission its Manono project in June, with output expected to reach 130,000 tons of lithium carbonate equivalent annually at full capacity, according to a company report released March 20.

That would place the operation among the largest hard-rock lithium assets globally, with only a handful of Australian mines producing more.

At peak output, expected around 2028, Manono could account for about 5 percent of global mined lithium supply, according to CRU Group.

Based on estimates, Zijin’s operation is expected to produce between 850,000 and 875,000 tons of lithium concentrate annually at full capacity, based on estimates. The company is also building a processing facility that will convert about 500,000 tons of concentrate a year into lithium sulfate, an intermediate used in battery production.

The mine is being developed at a cost of about US$1.4 billion. Zijin owns nearly 55 percent of the project, with the Congolese state holding the balance.

The project’s scale makes it a significant addition to a market increasingly defined by supply concentration and geopolitical competition. Lithium is a critical input for electric vehicles and energy storage, and new large-scale projects remain limited.

The timing of Manono’s ramp-up is notable. Zimbabwe, one of Africa’s largest lithium producers, has restricted exports of lithium concentrate, tightening near-term supply.

The project also highlights China’s entrenched position in global critical minerals supply chains. The DRC has become central to that strategy, with Chinese companies dominating copper and cobalt output and expanding into lithium.

The asset’s ownership, however, remains contested. Australia’s AVZ Minerals (ASX:AVZ) continues to claim rights to the deposit and has launched arbitration proceedings against the Congolese government after its license was revoked and partially reassigned to Zijin.

The southern portion of the deposit has also drawn interest from KoBold Metals, a US-backed exploration firm supported by investors including Bill Gates and Marc Andreessen.

During a January meeting at the White House last month, US officials encouraged AVZ to sell its stake in Manono to an American company. The push comes as the administration seeks to narrow China’s lead in supply chains tied to electrification, defense, and advanced manufacturing.

A minerals partnership signed between Washington and Kinshasa in December is intended to support that effort, though Chinese companies retain a significant head start.

Beyond lithium, Zijin is also expanding its exposure to other strategic metals.

The company is evaluating investments in tungsten and uranium, according to Lisa Liu, managing director at Gold Mountains Asset Management, a unit that manages part of Zijin’s financial portfolio.

“We are looking to expand our position in tungsten and other strategic metals,” including uranium, Liu told Bloomberg.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.