It is also reported that 100% of the exploration rights to the Manono lithium mine, bearing the number PR13359, have been returned and registered in the name of Congo Mining Development Ltd. with the approval of the Congolese government. Subsequently, Congo Mining Development Ltd. invited Zijin Mining to cooperate in the exploration and development of the northeastern portion of the exploration rights, and the two parties also established a joint venture company, Manono Lithium, for this purpose.
According to the joint venture agreement, the two parties hold the northeastern part of the exploration right for the project (the investigation right with the number PR15775) through Manono Lithium, of which Zijin Mining owns 61% equity of the joint venture company through its overseas subsidiary Jinxian Lithium, and Congo Mining Development Co., Ltd. holds 39% equity.
The agreement stipulates that Jinxian Lithium will lead the project's geological exploration, development, construction, and operational management. Before this, Zijin Mining obtained development rights for a hydroelectric power station near the mining area through a public tender, which will provide sufficient low-carbon power guarantees for the project's development. The project aims to complete the construction of the project within two years after the feasibility study and financing plan are finalized as soon as possible and to build a lithium smelting industrial park at the same time. The products will be supplied to downstream enterprises in the DRC based on market principles. When the project is developed and completed, it will become one of the world's leading lithium production bases and better promote the economic and social development of the DRC.
Zijin Mining indicated that although the Manono lithium mine is a "greenfield" project, it is located on an excellent lithium resource metallogenic belt, has great potential for prospecting, has conditions for large-scale open-pit development, and has decent development prospects. The Company, relying on its well-established independent geological prospecting and exploration capabilities, expects to achieve significant breakthroughs in the exploration of lithium mica pegmatite resources. The Company will invest sufficient funds and technical support to facilitate the exploration and development of the project according to actual needs.
The DRC is understood to be one of Zijin Mining's key overseas placement countries. Since 2014, Zijin Mining has successively built and put into production large-scale mines such as Kolwezi Copper Mine and Kamoa-Kakula Copper Mine in the DRC, with a total investment of more than US$2 billion, making the DRC the world's second-largest copper producer, solving local employment for more than 6,800 people, and playing an essential role in promoting economic and social development in DRC. Zijin Mining has consistently adhered to high standards to promote green mine construction, making the Kolwezi Copper Mine the first in DRC's 100-year mining history. When completed, the Kamoa-Kakula mine will be one of the world's lowest greenhouse gas emissions per tonne of copper produced.
Zijin Mining strategically laid out a new energy industry in 2021. It cultivated a new "strategic growth pole" represented by "lithium," forming a "two lakes and one mine" pattern of Argentina's 3Q salt lake, Tibet's Lago Cuo salt lake lithium mine, and Hunan Daoxian Xiangyuan tough rock lithium mine, controlling more than 12.15 million tons of lithium carbonate equivalent, ranking ninth in the world and third in China. It plans to form a production capacity of 120-150,000 tonnes of lithium carbonate by 2025.
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