(Reuters) – China’s Zijin Mining said on Friday it was in talks with two of Zangge Mining’s biggest 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 together own about 40% of the 46.63 billion yuan ($6.36 billion) miner, according to LSEG data.
A potential deal would allow Zijin to consolidate its ownership of the Julong copper project in Tibet, a joint venture with Zangge.
Last year, Zijin received government approval to increase the production of the Julong mine to about 350,000 metric tons per day, making it the largest single copper mine in China.
The talks further underscore Zijin’s attempts to capitalize 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)
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D’Souza and Subhranshu Sahu)
