On August 29, 2025, Zijin Mining (601899.SH/02899.HK) announced that the 84% equity stake it acquired through public bidding for Anhui Jinsha Molybdenum Co., Ltd. had completed the registration of changes in the company's business registration, and it officially obtained full control of the Shapinggou Molybdenum Mine in Jinchai County, Anhui Province. The mine has reserves of 21 million tons of molybdenum (including 11 million tons of reserves), with an average grade of 0.187% - 0.2%. It is a rare super-large undeveloped porphyry-type molybdenum deposit in the world. The mining rights expire on July 28, 2053, and the designed annual production capacity is 10 million tons. After completion, the annual average production of molybdenum will be approximately 22,100 tons. The acquisition of Shapinggou Molybdenum Mine marks a significant breakthrough for Zijin Mining in the strategic metals sector. The molybdenum resources with a grade of ≥ 0.3% in this project amount to 7.2 million tons, far exceeding the average grade of less than 0.1% of 65% of domestic molybdenum mines. The ore body is concentrated and the composition is uniform, making it suitable for large-scale underground mining. The total investment of the project is approximately 30 billion yuan, with a construction period of 4.5 years. It is expected to be fully operational in 2029, and after completion, it will become the second-largest molybdenum mine in the world, helping Zijin Mining increase its equity molybdenum resources from 920,000 tons to 2.9 million tons, accounting for one-third of the total in China. To extend the industrial chain value, on the same day, Zijin Mining signed a "Cooperation Intent Letter" with Jinduicheng Molybdenum Co., Ltd. (601958.SH). According to the agreement, Zijin Mining intends to transfer 24% of the equity of Jinsha Molybdenum Co., Ltd. to Jinduicheng Molybdenum Co., Ltd. at the original acquisition price plus financial expenses. After the transfer, the equity ratio of both parties will be adjusted to 60%: 34%, and the remaining 6% will be held by Jinchai County Urban Development Investment Co., Ltd. Both parties plan to jointly establish an smelting company. Jinduicheng Molybdenum Co., Ltd. holds 51% of the shares and will lead the smelting and deep processing of molybdenum concentrate.
Zijin Mining will form a "mining - smelting - high-end materials" full-chain layout through the synergy of mining resources and smelting capacity. Molybdenum, as a high-strength and high-temperature-resistant strategic metal, is widely used in military, aerospace, new energy, and semiconductor fields. The development of Shapinggou Molybdenum Mine will break the monopoly of the United States and Japan in high-purity molybdenum target materials (with 90% of the global market share controlled by Pallix and Toshiba), providing key material self-protection for China's new energy vehicles, 5G communication, and other industries. After completion, it is expected to generate an annual average profit of over 1 billion yuan, with an internal rate of return of 12.48%. In addition, with the by-product molybdenum from the giant dragon copper mine and the multi-basin copper mine under Zijin Mining, the company is expected to become the world's largest producer of mineral molybdenum. It is reported that the mining rights of Shapinggou Molybdenum Mine have a validity period of up to 30 years, and the total service life of the mine can reach 94 years (including the construction period). In addition, Zijin Mining plans to issue 10 billion yuan of convertible bonds to support resource integration. The economic value of this project is expected to exceed 600 billion yuan. Analysis indicates that this acquisition not only strengthens China's strategic position in key metals, but also enhances global pricing话语权 through vertical integration of the industrial chain, injecting core momentum for the new energy revolution and the upgrade of high-end manufacturing.
