Chinese companies are gaining a solid appetite for brine assets

Zijin Mining plans to acquire the second brine asset in Tibet, China. Attracted by the thriving lithium industry, a number of Chinese companies are looking for salt lake assets in Tibet, where several brine projects are under development. The key takeaways are: • Zijin Mining plans to acquire Laguocuo Salt Lake with US$736 million. With the acquisition of Laguocuo Salt Lake, Zijin is expected to hold more than 900 Mt LCE of brine resources, with a planned lithium carbonate capacity of 50 kt LCE by 2025. • Some brine projects in Tibet have good resources and quality, which have attracted a number of Chinese producers to invest. • The salt lakes in Tibet have the potential to become essential in the supply of lithium chemicals, though the project development investment is capital intensive and challenging.