Zangge Mining Breaks New Ground in ESG Practices

Source: Baidu Baijiahao – Dazhong Securities News | Original Editor: Gong Sixuan

Zangge Mining, April 21, 2025, 07:07, Qinghai

The content does not constitute any investment advice; information disclosure is based on official company announcements. Investors act at their own risk.

In the heart of the Qinghai-Tibet Plateau, the Chaka Salt Lake glimmers under the sun like scattered gold. As one of China’s most important soluble potash-magnesium salt deposits, it is also the main battlefield for Zangge Mining. In an era defined by the “dual carbon” goals and global sustainable development, Zangge Mining has embraced ESG principles, deeply integrating green development, social responsibility, and compliance governance into its corporate strategy. By balancing resource development and ecological protection, and combining technological innovation with value-sharing practices, the company has set a benchmark. In 2024, Zangge Mining delivered impressive ESG results, providing a practical model for sustainable development in resource-based enterprises.

Recently, S&P Global released the Sustainable Development Yearbook (China Edition) 2025. Out of more than 1,600 competing companies, 164 were selected, with Zangge Mining recognized on the “Industry Best Progress” list—the only representative from the chemical industry.

From Brine to Living Water: The Symbiotic Philosophy of Plateau Mining

Historically, the Chaka Salt Lake mining area appeared barren due to years of exploitation. Through land leveling, backfilling of subsidence areas, and improvements to production roads and facilities, the ecological environment has significantly improved. This transformation exemplifies Zangge Mining’s green mine construction and serves as a vivid example of its ESG practices. In 2024, the company invested dedicated funds for environmental restoration, transforming 145.04 square kilometers of mining area. To explore sustainable models for resource development and ecological restoration, Zangge Mining signed a research collaboration with Qinghai University to study the effects of furrow mulch and nonwoven fabric covering on saline-alkali land vegetation recovery in the Qaidam Basin, enhancing ecological quality across the Qinghai-Tibet region.

As a resource developer rooted in the plateau, Zangge Mining regards environmental protection as a lifeline. Following the principle of “develop while protecting, protect while developing,” it has built a full-chain green development system. Water conservation is a basic ethical imperative in the plateau’s arid Gobi environment. In 2024, Zangge Mining advanced comprehensive resource utilization to reduce environmental impact at the source. Total water intake decreased by 20.7% year-on-year, water recycling reached 77.45%, and industrial wastewater was fully reused, achieving zero wastewater discharge.

Facing climate change challenges, the company optimized technological routes and applied green production and circular economy principles to achieve clean production goals. Processes such as brine reuse and tail solution recovery maintained 100% comprehensive utilization of liquid waste in 2024. Resource extraction, beneficiation, and overall recovery rates remained at leading domestic levels. In co-utilization of associated resources, Zangge Mining collaborated on bromine and iodine recovery technologies, using “special adsorbent for iodine + oxidation adsorption for bromine” to improve extraction efficiency from deep brines and promote diversified industrial chains.

In 2024, Zangge Lithium achieved national green factory certification, becoming a benchmark for green manufacturing in the industry. Zangge Potash invested CNY 12.04 million in equipment upgrades, which is expected to save about 490 tons of standard coal equivalent annually and generate economic benefits of approximately CNY 1.7 million per year. Zangge Mining also conducted Scope 3 carbon emission accounting for the first time, purchasing 266,725.21 MWh of green electricity, equivalent to reducing 54,600 tons of CO₂ emissions.

Zangge Mining’s ESG achievements were widely recognized in 2024. Its Hang Seng Corporate Sustainability Index rating rose from BB to BB+, and its S&P Global CSA score ranked in the top 25% of the industry. Behind these rating improvements is the company’s commitment to transparency, a key factor in winning public trust. Li Ruixue, Zangge Mining’s company secretary, said: “Investors now care more about ‘data with warmth,’ such as how we advance environmentally friendly production, adhere to compliant operations, and enable local communities to share in development results.”

From Industry Follower to Standard Leader: Lithium Extraction at the International Frontier

In promoting innovation and clean production, digital intelligence has emerged as a core driver of operational efficiency and sustainable development, becoming central to industrial transformation. Leveraging high-end and intelligent technologies, Zangge Mining actively explores scientific research and application in mining to enhance smart construction and green, safe production. Zangge Potash received the A-level project management certification for integration of industrialization and informatization, laying a solid foundation for new industrialization. Zangge Lithium upgraded its control systems to aim for “black screen” management and unmanned operation, while digitally monitoring raw material, water, and electricity consumption in phases.

In the lithium plant, Zhu Hongwei monitors real-time data on central control screens. A veteran in salt lake development, he leads technical experts in advancing innovative processes. “In the electrodialysis system upgrade, the nanofiltration workshop applied process innovations and equipment upgrades, including ORP monitoring and membrane replacement, solving membrane oxidation issues in lithium brine chloride systems and reducing equipment corrosion risk,” he said. In 2024, Zangge Lithium completed automation upgrades for 20 series across five adsorption workshop areas, with six series fully integrated.

The eastern Chaka Salt Lake lithium concentration is only about 50 mg/L, at the lower industrial limit for brine lithium mining, dropping even further in winter. The ultra-low concentration brine “one-step” battery-grade lithium carbonate technology developed by Zhu Hongwei and team uses continuous adsorption, multi-stage membrane refining, and deep resin impurity removal to overcome world-class challenges. In 2024, this technology was recognized as internationally leading by the Qinghai Science and Technology Department Expert Committee, winning the Qinghai Science and Technology Progress Second Prize and the 3rd International Zero-Carbon Festival “Outstanding Green Innovation Award.”

After years of industry expertise and continuous technological innovation, Zangge Mining has transitioned from industry follower to standard leader. In 2024, the national standard Brine Lithium Carbonate was officially implemented with Zangge’s participation. Zangge Lithium, offering world-class standard products, has become the designated supplier for multiple battery manufacturers.

Balancing Shareholder and Societal Expectations: Strong on Both Fronts

Corporate value lies not only in economic performance but also in fostering symbiotic relationships with employees, communities, and society. Following the principle of “serve society, give back to society,” Zangge Mining’s social responsibility spans community education, rural revitalization, and charity. For rural revitalization, the company donated CNY 200,000 to strengthen the “Qi Hong Station” project in Chana Village, boosting local economic innovation. The “Yi Xing Hong Guang” charity project has donated over CNY 4 million to support schooling for underprivileged students in Qinghai Huangnan, Golmud, Tianjun County, and Yuxi in Yunnan, benefiting over 1,900 students and improving teaching facilities.

On January 7, a 6.8-magnitude earthquake struck Dingri County, Shigatse, Tibet. Zangge Mining activated its emergency response mechanism, donating CNY 5 million through the Qinghai Red Cross for relief and reconstruction. Overseas, Zangge Mining’s Laos project has steadily increased local employment, exemplifying social responsibility along the Belt and Road.

For shareholders, Zangge Mining implements a “quality and returns enhancement” strategy, combining dividends and share repurchases. As of February, the company repurchased and canceled 10.21 million shares for about CNY 300 million, reaching the target limit. Since 2022, Zangge Mining has consecutively paid dividends for three years, totaling CNY 7.4 billion. The company also announced a new employee stock ownership plan and provided a three-year performance guidance, reflecting confidence in sustainable, high-quality growth.

Compliance and Transparency as a Foundation; Strategic Synergy with Zijin Unlocks Growth Potential

Effective corporate governance, moving beyond formal compliance, is the foundation for long-term sustainability. In 2024, Zangge Mining invested CNY 19.27 million in safety, conducted legal risk inspections, revised the Risk Assessment Management Measures, and maintained zero major compliance incidents. Zangge Lithium recorded seven consecutive years without major safety accidents. The company received more than ten honors, including the “2024 China Manufacturing Listed Company Social Responsibility Five-Star Gold Award,” “ESG Model Enterprise Outstanding Green Innovation Award,” “Jin Shuguang Social Responsibility Award,” and “Special Public Welfare Contribution Award.”

Positive developments continue. In January, Zijin Mining announced the CNY 13.7 billion acquisition of 24.82% of Zangge Mining shares, gaining control. Zijin’s international resource integration and ESG expertise are expected to deeply empower Zangge Mining. Zijin’s innovative “Five Loops Unified Ore Flow” mining management model integrates exploration, mining, beneficiation, metallurgy, and environmental protection for full-process control, becoming a global competitive advantage. With strategic collaboration with its new shareholder, Zangge Mining’s potential in resource reserves, management efficiency, and governance standardization is promising.

From the Qinghai-Tibet Plateau to the Belt and Road, Zangge Mining demonstrates sustainable development through coexistence, shared prosperity, and collaborative governance. At 4,300 meters above sea level at the Mami Co Salt Lake in Tibet, Zangge Lithium’s experts are transferring technology to the Tibet Ali Mami Co. Mining Company. The company’s innovative blueprint for resource development is increasingly evident. Looking ahead, Chairman Xiao Ning stated that Zangge Mining will continue pursuing its vision of becoming a world-class mining group, empowering ecological protection with technology, adopting safer and greener production methods, deepening community integration, and strengthening corporate management to enhance core competitiveness and internal sustainability, contributing Chinese mining expertise to global sustainable development.

Editor: Yuan Chengying