China's Zijin Mining said on Friday it was in talks with Zangge Mining's top two shareholders to buy a potential controlling stake in the company. Zijin is in talks with Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management,

The company primarily produces potash but derives around one-third of its revenue from lithium extracted from salt lakes in Qinghai.

Zijin Mining Group Co., one of China’s most acquisitive miners, says it’s in discussions to buy shares and potentially to take over Zangge Mining Co. Ltd. a lithium and potash producer.

Zijin, a global powerhouse in copper and gold, is advancing its push into the lithium sector with the potential acquisition of Zangge Mining.

Zijin Mining is in talks with Zangge Mining to acquire a controlling stake in the $6billion lithium miner, as it seeks to up its presence in the lithium market

Lithium’s crash since late-2022 — prices have slumped nearly 90% — has hammered listed producers and fueled a spurt of dealmaking. Rio Tinto Group, the world’s second-biggest mining group, last year agreed to buy Arcadium Lithium Plc for $6.7 billion.