The Shapinggou molybdenum ore beneficiation project officially commenced in Jinzhai County, Anhui Province, on June 18.

The project involves a total planned investment of approximately 8 billion yuan and is projected to produce 50,000 tonnes of molybdenum concentrate at 57% grade annually upon operation. Long Yi, Vice President of Zijin Mining Group Company Limited (ASX: ZIJ), stated that the project aims for green, safe, intelligent, tourism-friendly, and prosperity-bringing mine construction. It will accelerate the creation of a trillion-yuan molybdenum-based industrial cluster, effectively transforming world-class resource advantages into county-level development momentum and aiding high-quality economic growth in the old revolutionary base area.

The launch of this beneficiation project signifies the Shapinggou molybdenum mine development has entered a new phase. Dong Yile, Secretary of the Jinzhai County Committee, indicated that the county will provide comprehensive support throughout the project to facilitate its early completion and operation.

Molybdenum Resource Foundation Strengthened

Nestled among mountains in Guanmiao Township, Jinzhai County, Anhui, lies the world-class porphyry-type Shapinggou molybdenum deposit, the largest single molybdenum deposit globally with a molybdenum metal reserve of 2.4594 million tonnes. This discovery not only rewrites the history of "no major deposits in the eastern Dabie Mountains" but also bolsters China's standing in the molybdenum resource sector.

The geological genesis of the Jinzhai Shapinggou molybdenum deposit is deeply rooted in the tectonic setting of the eastern Qinling-Dabie orogenic belt. Located northeast of the intersection of the Tongbai-Mozitan deep-seated fault and the Shangma fault, it is an area of frequent geological activity. In 2007, after repeatedly reviewing regional geological data, geologists decided to shift their focus to deep exploration.

In September 2008, a thrilling discovery was made when drilling reached 512 meters depth: a molybdenum ore body. Subsequent drill holes all encountered ore, with the first hole intersecting an industrial molybdenum ore body nearly 700 meters thick.

From a geological perspective, the formation of the Shapinggou molybdenum deposit is a masterpiece of Yanshanian intermediate-acidic magmatic activity. The metallogenic rock mass formed in the late Cretaceous period, approximately 109.3 million years ago, and consists of high-silica, alkali-rich, peraluminous granitic magma. This magma originated from the partial melting of the Dabie gneiss complex in the lower crust, mixed with mantle material, forming silica-rich, alkali-rich granitic magma. During magmatic evolution, hydrothermal fluids carrying molybdenum intruded upwards, controlled by the intersection of NNE-trending tensional-shear faults and NW-trending compressional-shear faults, forming the concealed porphyry-type molybdenum deposit.

The evolution of the metallogenic fluid is particularly fascinating. Initially rich in carbon dioxide with temperatures ranging from 245 to 435 degrees Celsius, the fluid underwent boiling, cooling, and mixing as the magma evolved, prompting molybdenum (in the form of molybdenite, MoS2) to precipitate in contact zones and fractures. The ore body, occurring in a pipe-like shape within the concealed granite porphyry and its exocontact zone, has a maximum length of 1,350 meters, an average thickness of 661.32 meters, and a maximum thickness of 945.15 meters. This immense thickness and continuity are characteristic of porphyry-type molybdenum deposits.

The discovery of the Shapinggou molybdenum deposit confirms that the Qinling-Dabie orogenic belt is China's most important gold-molybdenum metallogenic belt, providing crucial theoretical guidance for regional mineral exploration.

Interestingly, there are two metallogenic systems between the Shapinggou molybdenum deposit and peripheral lead-zinc deposits. Research indicates the lead-zinc mineralization occurred around 120 million years ago, earlier than the molybdenum mineralization (111-115 million years ago). The two systems correspond to two magmatic events: the first in the early Early Cretaceous, dominated by intermediate-acidic intrusive rocks forming the hydrothermal lead-zinc system; the second in the late Early Cretaceous, dominated by quartz syenite and granite porphyry, forming the porphyry-type molybdenum system. This discovery explains why the Shapinggou deposit is a single molybdenum ore body without lead, zinc, or copper components, while other molybdenum deposits in the eastern Qinling often contain associated lead-zinc.

The discovery of this world-class molybdenum mine is of great significance for the development of the old revolutionary base area of Jinzhai County, bringing new development opportunities to this red land. The mine's development will drive local infrastructure construction, create numerous jobs, improve the area's landscape, and help residents achieve prosperity.

Shapinggou Molybdenum Mine Enters New Phase

In 2022, domestic mining leader Zijin Mining Group Company Limited (ASX: ZIJ), leveraging its technical and financial strengths in developing ultra-large mines and deep mining, formally entered the Shapinggou molybdenum project, ushering in a new stage.

On October 21, 2022, Zijin Mining acquired an 84% stake in Jinsha Molybdenum Industry held by Anhui Jinmu Dikuang for 5.91 billion yuan through a public tender on the Anhui Property Rights Exchange, securing absolute control of the Shapinggou mine in one of the most influential M&A deals in China's mining sector that year.

Securing the Shapinggou mine not only reinforces Zijin Mining's position as a gold giant but also solidifies its dominance in China's molybdenum industry.

Post-acquisition, Jinsha Molybdenum's shareholding structure changed to Zijin Mining 84%, Jinmu Co., Ltd. 10%, and Jinzhai County Urban Construction Investment 6%. As the largest shareholder, Zijin Mining took full charge of project advancement, accelerating the completion of core permit applications and technical optimization.

On July 28, 2023, the Ministry of Natural Resources officially issued the mining license for the Shapinggou molybdenum mine, covering an area of 2.7157 square kilometers and valid until July 28, 2053, marking the critical transition from exploration to mining and granting legal development rights.

On July 10, 2025, the project's environmental impact assessment report received approval from the Anhui Provincial Department of Ecology and Environment, resolving a core prerequisite for construction commencement.

On August 29, 2025, Zijin Mining completed the industrial and commercial registration change for the 84% stake in Jinsha Molybdenum, formally finalizing the asset transfer, and signed a letter of intent for cooperation with Jinmu Co., Ltd., initiating collaborative industrial chain development.

On December 5, 2025, the Shapinggou mine's mining and beneficiation project, along with the Tongluo tailings pond and ancillary facilities, received approval from the Anhui Provincial Department of Natural Resources, authorizing an annual mining and processing scale of 10 million tonnes of ore, marking the project's full entry into substantive construction.

In 2026, the Shapinggou project reached a milestone as Zijin Mining and Jinmu Co., Ltd. formed a deep strategic partnership, creating a complementary "mining + smelting" full industrial chain advantage.

On January 15, 2026, Zijin Mining and Jinmu Co., Ltd. formally signed the "Project Cooperation and Equity Transfer Agreement," with Zijin Mining transferring a 24% stake in Jinsha Molybdenum to Jinmu for 1.731 billion yuan.

Post-transaction, the final shareholding structure was set: Zijin Mining holds 60%, retaining control and leading mine construction and operation; Jinmu Co., Ltd. holds 34%, leading molybdenum smelting and deep processing; Jinzhai County Urban Construction Investment retains its 6% stake.

The parties simultaneously planned to establish a molybdenum smelting and deep processing company in Jinzhai County, with Jinmu holding 51% and Jinsha Molybdenum 49%, achieving an integrated "mining-beneficiation-smelting-processing-new materials" industrial chain layout to transform resource advantages into industrial strengths.

In January 2026, bidding commenced for the Shapinggou mine's shaft construction (Lot 1), with main works including underground development, concentrator construction, and tailings pond construction fully underway, marking the official start of large-scale construction for this world-class molybdenum deposit dormant for over a decade.

In May 2026, a standardized asphalt road to the Shapinggou mine was completed. On June 18, the Shapinggou molybdenum ore beneficiation project officially commenced, signifying the full-scale implementation of the mine's development and construction.

It is reported that the deep and peripheral areas of the Shapinggou deposit still hold significant potential for resource expansion. The current planned mining depth extends to -1,035.81 meters, with a designed mine life of 84 years, but the main ore body may only be the "tip of the iceberg." Located in the eastern Qinling-Dabie area with excellent metallogenic conditions, the prospects for discovering deep concealed porphyry molybdenum deposits are vast. The ore contains rhenium (Re) at 0.001% to 0.0188% in molybdenite, along with high sulfur and niobium resources, indicating significant comprehensive utilization value.

China's Largest Molybdenum Capital Quietly Emerges

Molybdenum, known for its high strength, heat resistance, and corrosion resistance, is the "universal steel nail" for producing alloy steel, superalloys, and high-speed tool steel. It plays a key role in emerging fields like new energy vehicles, 5G communications, aerospace, and semiconductors. Industry insiders note that developing the Shapinggou mine will effectively increase the domestic self-sufficiency rate of high-end molybdenum materials and enhance supply chain autonomy.

In terms of molybdenum resource reserves, global molybdenum reserves totaled 17 million tonnes in 2025, with China holding 7.8 million tonnes, accounting for 45.9% of the global total, followed by the US, Chile, Russia, and Peru. China's molybdenum production in 2025 was 97,000 tonnes, ranking first globally and representing 37.3% of global output, with the top five countries almost monopolizing global supply.

The global molybdenum supply structure has notable weaknesses, with about 70% of molybdenum coming as a by-product or co-product of porphyry copper mines, while primary molybdenum mines account for only 30%. Industry production increases primarily follow copper price trends and copper mining plans, making it difficult for molybdenum's own market demand to drive capacity release.

Typically, primary molybdenum mines take 8 to 10 years from construction to production. For a world-class primary mine like Shapinggou, which only received mining and processing approval in December 2025, even with the industry-recognized "Zijin Mining speed," the mine is expected to achieve output by the second half of 2027 at the earliest.

China's molybdenum consumption in 2025 was approximately 150,000 tonnes, a year-on-year increase of 9.3%, reaching a record high. The supply gap is significant, with molybdenum mainly used in traditional engineering steel, stainless steel, tool steel, and duplex steel production, downstream applications covering petroleum and petrochemicals, machinery, automotive, nuclear power, seawater desalination, and new energy equipment.

Leveraging Zijin Mining's development of the Shapinggou resources, Jinzhai County is striving to build a national molybdenum industry hub. The effort began with the "Jinzhai Molybdenum-based New Materials Deep Processing Base Project" signed on October 28, 2025, jointly promoted by the Jinzhai County People's Government, Jinmu Group, and Zijin Mining.

According to the agreement, Jinzhai County provides resource support from the Shapinggou mine, Jinmu Group leads technology and industrial chain extension, and Zijin Mining leverages its resource integration strengths. The tripartite cooperation aims to transform resource advantages into industrial strengths and build a nationally leading molybdenum industry base.

Currently, preliminary work for the Shapinggou mine development has fully commenced, and planning for the molybdenum-based new materials industrial park is complete. Per the agreement, the Jinzhai County People's Government is responsible for land use support and service coordination.

The molybdenum-based new materials industrial park is scheduled to commence construction in November 2026. Upon completion, it will form a deep processing base integrating technology R&D, intelligent manufacturing, and green applications.

The main objectives are threefold: first, extend the molybdenum industrial chain, develop high-value-added products, and build a high-tech materials innovation base, advanced manufacturing process demonstration zone, circular economy industrial complex, green and low-carbon factory, and digital intelligent demonstration factory; second, drive molybdenum industry upgrades in Anhui Province, the Yangtze River Delta, and the Yangtze River Economic Belt, creating a nationally influential molybdenum industry hub; third, establish a high-quality development demonstration project in the old revolutionary base area, achieving organic integration of resource development, technological innovation, and green development.

With the comprehensive implementation of a series of molybdenum industry development plans, transforming Jinzhai County into China's largest, and potentially the world's, molybdenum capital is not far off.

Once the Shapinggou mining and beneficiation project is operational, for Zijin Mining, its attributable molybdenum resources will increase from 920,000 tonnes to 2.9 million tonnes, accounting for about one-third of China's total, propelling it into the ranks of the world's top molybdenum producers. This enhances its strategic industrial metals portfolio and further consolidates its position as a global mining leader.

For national resource security, molybdenum is a core strategic metal in high-end manufacturing sectors like wind turbine bearings, military superalloys, new energy vehicles, and semiconductor materials. Developing the Shapinggou mine will provide China's strategic emerging industries with long-term, stable, low-cost raw material supply, significantly boosting China's voice and pricing power in the global molybdenum industry chain.

For regional development, the project is located in Jinzhai County, part of the Dabie Mountain old revolutionary base area. At full capacity, it is expected to generate annual tax revenue of billions of yuan, create thousands of jobs, drive local infrastructure development and the establishment of the molybdenum-based new materials industrial park, becoming a core engine for rural revitalization and high-quality economic growth in the old revolutionary base area.