By (Reuters) -China’s Zijin Mining said on Friday it was in talks with Zangge Mining’s top two shareholders to buy a potential controlling stake in the company.
Zijin is in talks with Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management, which collectively own about 40% stake in the 46.63 billion yuan ($6.36 billion) miner, according to LSEG data.
The potential deal would allow Zijin to consolidate its ownership over the Julong copper project in Tibet, its joint venture with Zangge.
Last year, Zijin had won government approval to expand the Julong mine’s output to about 350,000 metric tons per day, making it the largest single copper mine in China.
The talks further underline Zijin’s attempts to cash in on growing demand for battery metals, as it prepares to start production at its first lithium exploration project in the Democratic Republic of Congo next year.
($1 = 7.3319 Chinese yuan)