(Reuters) – China's Zijin said on Friday it was in talks with Zangge Mining's largest shareholder 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 hold about 40% of the mining company's shares worth 46.63 billion yuan ($6.36 billion), according to LSEG data.
The potential deal will allow Zijin to consolidate its ownership of the Julong project in Tibet, which is its joint venture with Zangge.
Last year, Zijin received government approval to expand the Julong mine's production to about 350,000 metric tons per day, making it the largest single copper mine in China.
The talks also underscore Zijin's attempts to capitalize on growing demand for battery metals, as it prepares to begin production on its first lithium exploration project in the Democratic Republic of the Congo next year.
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