China’s Zijin halts acquisition activities amid high costs, geopolitical tensions

Zijin Mining Group, a prominent Chinese copper and gold mining company, has put the brakes on its acquisition activities due to factors such as high project valuations and geopolitical tensions. Although the company is still exploring merger and acquisition opportunities, its pace of deals has slowed down in comparison to previous years.

Zijin Mining has been known for its aggressive acquisition strategy, having acquired a series of copper and gold mines globally to support its ambitious production goals. Additionally, the company has expanded into the lithium sector to establish a presence in the battery metals market for electric vehicles.

The company’s current approach reflects the challenges it faces, including intense competition for projects and elevated project premiums. This, combined with relatively high metals prices, has prompted Zijin Mining to exercise greater caution in its acquisitions.

Given the existing geopolitical and economic landscape, Zijin Mining intends to increase its investments within China and neighboring countries. The company aims to focus on significant projects that could have a substantial impact on its overall performance. Zijin Mining’s emphasis will remain on gold, copper, zinc, and new energy minerals.

While lithium prices have experienced a significant decline recently, Zijin Mining remains optimistic. The company’s lithium projects are still profitable even in the face of such price fluctuations, and its overall strategy seems to account for potential market volatility.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Australia, Malaysia, and Indonesia lead APAC’s charge in CCS innovation and investment

The Asia Pacific (APAC) region is increasingly becoming a significant player in the carbon capture and storage (CCS) sector, with countries intensifying their decarbonization efforts despite challenges like unsuitable geological conditions. Australia, Malaysia, and Indonesia are identified as emerging hubs in APAC…

Shift to electric vehicles to slow global petrol demand growth in 2024

The growth in global petrol demand is expected to slow significantly in 2024, according to analysts, primarily due to the increasing adoption of electric vehicles (EVs) in China and the United States, as well as a return to normal consumption patterns following the bounce-back in demand experienced…

Norway’s seabed mining plans under EU scrutiny for critical raw materials

The European Union (EU) will closely monitor Norway’s efforts in exploring the deep seabed for potential mining of critical raw materials, as part of the bloc’s strategy to decrease its reliance on China. Norway recently became one of the first countries to officially authorize seabed mining…

Stay informed

error: Content is protected !!