The approval process for the mining, beneficiation, and tailings pond project of the Shapinggou Molybdenum Mine of Zijin Mining Anhui Jinsha Molybdenum Co., Ltd. has finally been settled.
On January 5, 2026, the Department of Natural Resources of Anhui Province publicly released the approval results for mineral resource overburden approval in the fourth quarter of 2025. The Jinzhai County Shapinggou Molybdenum Mine Mining and Beneficiation Project of Anhui Jinsha Molybdenum Industry Co., Ltd. (Anhui Natural Resources Mine Guarantee Letter [2025] No. 154) and the Tongluo Tailings Pond and Auxiliary Facilities Engineering Project of Anhui Jinsha Molybdenum Industry Co., Ltd. (Anhui Natural Resources Mine Guarantee Letter [2025] No. 155) were approved, with both approval dates being December 5, 2025. This means that the construction of projects related to the Shapinggou Molybdenum Mine will enter a substantive stage.
The acquisition is completed, obtaining molybdenum ore resources
On October 21, 2022, Zijin Mining signed a property rights transaction contract with Anhui Jinmu Geology and Minerals. The company acquired an 84% stake in Jinsha Molybdenum Industry for 5.91 billion yuan through public listing at the Anhui Property Rights Exchange Center, thus securing the Shapinggou molybdenum mine in Jinzhai County, Anhui Province, which is the world's largest single molybdenum mine in terms of reserves.
On August 29, 2025, Zijin Mining issued an announcement stating that it had successfully acquired an 84% stake in Jinsha Molybdenum Industry through public listing, completed the industrial and commercial change registration, and formally obtained control of the Shapinggou Molybdenum Mine in Jinzhai County, Anhui Province.
The molybdenum metal resource of this mine is 2.1 million tons (including 1.1 million tons of reserves), with an average grade ranging from 0.187% to 0.2%. The designed annual production capacity is 10 million tons, and after reaching the designed capacity, the expected annual molybdenum output is about 22,100 tons. The mining right of this mine is valid until July 28, 2053, which provides a guarantee for the long-term stable operation of the project.
The high-grade resources in the Shapinggou molybdenum mine account for a relatively high proportion. Among them, the resource amount with molybdenum metal grade ≥ 0.3% reaches 720,000 tons. Moreover, the ore body is concentrated and its composition is simple, making it suitable for large-scale underground mining and intensive utilization.
Strategic investment to build a molybdenum industry base
The Shapinggou molybdenum mine is located in Guanmiao Township, Jinzhai County, Anhui Province. It is a world-class porphyry molybdenum deposit and the largest single molybdenum mine in the world. In 2008, the 313 Geological Team of the Anhui Provincial Bureau of Geology and Mineral Resources drilled here and discovered an industrial ore body nearly 700 meters thick. In 2011, the detailed survey report passed the review.
It is understood that the currently largest molybdenum mine in the world is the Climax Molybdenum Mine in Colorado, USA, with reserves of over 3 million tons. The proven reserves of the Shapinggou Molybdenum Mine are second only to this mine, making it the world's second largest molybdenum deposit.
This mine has rewritten the history that "there are no large mines in the eastern section of the Dabie Mountains" and confirmed that the Qinling-Dabie orogenic belt is an important gold-molybdenum metallogenic belt. Its development has been included in the "Plan for Revitalization and Development of the Dabie Mountains Old Revolutionary Base Area" and the "Implementation Plan for Optimizing and Upgrading Anhui's Non-ferrous Metal Industry", which has a positive impact on the local infrastructure construction and the planning of the molybdenum-based new material industrial park.
On the evening of October 17, 2025, Zijin Mining released an announcement stating that the company held the 13th meeting of the 8th Board of Directors, which reviewed and approved the "Proposal on the Internal Project Approval of the 10 Million Tonnes/Year Mining and Beneficiation Project of Shapinggou Molybdenum Mine". It was agreed to carry out the internal project approval for the mining and beneficiation project of Anhui Shapinggou Molybdenum Mine. The estimated total investment of the project is approximately 7.206 billion yuan. The mining method adopted is the large-diameter deep hole open stope subsequent filling method, with a construction scale of 10 million tonnes/year for mining and beneficiation. The main product is molybdenum concentrate.
Including auxiliary facilities, the total investment in the project is approximately 30 billion yuan, with a construction period of 4.5 years, and it is expected to start production in 2029. By then, the mine will become one of the world's top molybdenum mines. Zijin Mining's equity molybdenum resources will increase from 920,000 tons to 2.9 million tons, accounting for about one-third of the country's total.
This acquisition has further expanded Zijin Mining's reserves of strategic metals and enhanced its position in the global molybdenum industry chain. By centrally controlling molybdenum resources, the company is expected to strengthen its market discourse power and influence.
Cooperate synergistically to build a complete industrial system
At the same time as the acquisition, Zijin Mining signed a "Letter of Intent for Cooperation" with Jinduicheng Molybdenum Co., Ltd. According to the agreement, Zijin Mining will transfer 24% of the equity of Jinsha Molybdenum Industry to Jinduicheng Molybdenum Co., Ltd. at the original transfer price plus financial expenses. After the transfer, the equity ratio between the two parties will be adjusted to 60%:34%, and the remaining 6% will be held by local state-owned assets
Both parties also plan to jointly establish a smelting company, with Jinduicheng Molybdenum Co., Ltd. holding a 51% stake. Zijin Mining, supported by its mining resources, will coordinate with the downstream smelting sector to promote the formation of an integrated industrial chain covering "mining - smelting - materials".
This cooperation model helps connect resources, processing and markets, providing support for the steady development of enterprises.
The strategic position of molybdenum: Indispensable in new energy and manufacturing industries
Molybdenum has properties such as high strength and heat resistance, and is widely used in industries such as military industry, aerospace, new energy, and semiconductors. In emerging fields such as new energy vehicles, 5G communications, and equipment manufacturing, molybdenum materials play a particularly crucial role.
The development of the Shapinggou molybdenum mine is expected to enhance the self-sufficiency capacity of key materials in China's manufacturing sector and further strengthen the independent and controllable level of the industrial chain.
After the project is put into production, the annual average profit is expected to exceed 1 billion yuan, with an internal rate of return of 12.48%. Combined with the by-product molybdenum from other copper mine projects under Zijin Mining, the company is expected to become one of the world's leading mineral molybdenum producers.
Long-term development: dual guarantees of resources and funds
The mining right of the Shapinggou Molybdenum Mine is valid for 30 years. Considering the construction period and subsequent expansion, the total service life of the mine is expected to reach 94 years, making it a major project with long-term development value.
In addition, Zijin Mining plans to issue 10 billion yuan in convertible bonds to support resource integration, development and construction, providing financial guarantee for the advancement of the project.
Preliminary estimates show that the economic value of this mine exceeds 600 billion yuan, and it is expected to become one of the company's core growth assets in the future.
Impact and Outlook: Reshaping the Global Molybdenum Industry Competition Pattern
After the completion and commissioning of the Shapinggou Molybdenum Mine, it will enhance China's ability to control molybdenum resources and help improve the overall competitiveness of China's molybdenum industry in the world. With the increase in the concentration of resources and production capacity, domestic enterprises are expected to have more say in the international molybdenum pricing system.
Against the backdrop of the rapid development of new energy and manufacturing industries, molybdenum, as a key strategic metal, has continued to display its status. The development of the Shapinggou molybdenum mine not only injects new impetus into the development of enterprises but also provides important resource support for the development of the country's strategic emerging industries.
From resource acquisition to industrial chain extension, from capital investment to global competition, Zijin Mining's acquisition of the Shapinggou Molybdenum Mine has become a landmark event in the development of China's molybdenum industry. This project has not only changed the competitive landscape of the domestic molybdenum industry but also enhanced China's strategic position in the global metal industry.
