China's Zijin Mining Launches First Industrial Lithium Mine in the Democratic Republic of the Congo: DRC Aims to Classify Lithium as a Strategic Mineral, with First Lithium Mines Set to Come Online
¬ The Democratic Republic of the Congo has begun the process of designating lithium alongside cobalt and tantalum-niobium ores as strategic minerals
¬ This move could increase royalty fees for lithium producers from 3.5% to 10%
¬ Zijin Mining is preparing to launch its Manono lithium project in June
The Democratic Republic of the Congo (DRC) passed a draft decree on Friday that classifies lithium as a strategic mineral. This action may significantly increase tax burdens on lithium producers. Meanwhile, Chinese mining company Zijin Mining is preparing to launch its Manono project in June, which will become the country’s first industrial-scale lithium mine.
According to the cabinet, this move reflects global trends in the critical minerals market and the growing importance of various mineral commodities for strategic industries, emerging technologies, and nuclear energy. Authorities stated that the measure aims to ensure the nation can benefit from the strategic significance of its domestic resources.
Strategic Status May Reshape Taxation Framework
Since the introduction of the 2018 Mining Code, the DRC’s list of strategic minerals has included cobalt, germanium, and tantalum-niobium ores. The new measures will expand the list to include lithium, as well as tantalum, niobium, tungsten, uranium, and rare earth elements.
Once implemented, this change may lead to revisions in the taxation framework applicable to these commodities. Strategic minerals are subject to a 10% royalty rate, whereas currently classified strategic minerals—such as base and precious metals—are taxed at only 3.5%. As a result, affected operators will be required to pay a higher percentage of their production revenues to the state.
Companies including Zijin Mining have not yet commented on the measure or its potential impact on their operations. The Manono mine, costing approximately $1 billion, is expected to process 500,000 tons of spodumene concentrate annually and produce 95,170 tons of lithium sulfate.
Aside from Zijin Mining, U.S.-based KoBold Metals may also be closely monitoring developments. The company is currently conducting exploration activities in the DRC in hopes of discovering new lithium deposits.
Among other minerals covered by the draft decree, only tantalum, wolframite (the primary ore of tungsten), and monazite (a rare earth mineral) appear in the DRC’s 2025 mineral production report.
Source: ecofinagency
Original article: toutiao.com/article/1866798090283075/
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