[Zijin Mining’s Russian Zinc-Lead Mine Faces Potential Suspension]

According to the Tuva regional government and Russian media outlet Channel 108, Zijin Mining Group’s subsidiary, LLC Lunsin, is facing severe financial difficulties at its Kyzyl-Tashtyg (Longxing) polymetallic mine in Russia’s Tuva Republic. The challenges stem from the escalation of international sanctions and growing restrictions on China-Russia financial cooperation.
Reports indicate that the company’s General Director, Kaiwen Li , has signed an order to suspend operations, potentially affecting all 1,200 workers, including around 800 local residents. In addition to financial stress, the mine has come under increased scrutiny from Russian regulatory authorities.
While the mine has not yet fully ceased operations, a suspension is expected in June. In response to the suspension plan, regional authorities and the Prosecutor’s Office have launched investigations into labor law compliance and established a dedicated task force to assess the decision.Kaiwen Li has departed for China to consult with Zijin headquarters regarding possible solutions.
Zijin holds a 70% stake in the mine, which produced approximately 71,300 tonnes of zinc in concentrate and 4,750 tonnes of lead in concentrate in 2024. As of 2020, the mine’s total mineral reserves amounted to 12.9 million tonnes, with an average zinc grade of 10.3%.
SMM will continue to monitor developments and assess the potential impact on the raw materials market.