Zijin Mining Agrees with Tuva Authorities to Maintain Operations at Kyzyl-Tashtyg Mine

Published: May 20, 2025 16:27

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[Zijin Reaches Agreement With Tuva Authorities to Maintain Operations at Kyzyl-Tashtyg Mine]

According to local government officials in Russia's Tuva Republic, Zijin Mining has decided to cancel a previously planned suspension of operations at the Kyzyl-Tashtyg (Lunsin) lead-zinc mine, which was scheduled to halt in June. The mine will now continue operating as normal. The reconsideration follows rising pressure from Western sanctions and tightening cross-border payment restrictions, particularly the reluctance of Chinese banks to handle transactions involving Russian financial institutions. Earlier this month, Li Kaiwen, General Director of LLC Lunsin, had signed an order indicating a potential shutdown of the mine. On May 19, Tuva Governor Vladislav Khovalyg announced that Zijin’s President Zou Laichang had met with regional authorities and reached an agreement to keep the mine running. According to Russian media, Zijin has invested over 17 billion rubles (approximately US$210 million) into the project over the past decade. In 2024, the operation produced approximately 71,300 tonnes of zinc in concentrate and 4,750 tonnes of lead in concentrate. As of 2020, the mine’s resource base was estimated at 12.9 million tonnes, with an average zinc grade of 10.3%. Additionally, SMM has learned that the mine recently completed a tender process for 20–30 ktonnes of concentrate, with shipments expected to begin in the second half of the year. SMM will continue to monitor the results.

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