Zangge Mining bets $171M on African potash to rebalance its copper reliance
What's the deal? Zangge MiningDealroom has a profile for this one. Try Dealroom →, China's second-largest potassium chloride producer, said on September 17, 2026, that it and Yuntianhua Holding will pay $171 million for a 92% stake in KP Company. Zangge is contributing US$119.4M and will hold an indirect 69% stake once the deal closes.
What's the endgame? KP's key assets are the Kanga and Loango potash deposits in the Republic of the Congo. The Kanga mining permit holds about 1.989 billion tonnes of potassium chloride resources at an average grade of 16.73%, adding sizeable reserves to Zangge's books.
Why now? Zangge has long pursued an overseas potash strategy, already holding interests in a project in Laos. The acquisition deepens its international footprint as it expands along a dual potassium-and-lithium track.
By the numbers: In the first half of 2026, Zangge posted revenue of US$284.6M and net profit of US$500.5M, up 102.09% year on year — roughly 90% of its full-year 2025 profit. Operating cash flow reached US$135.3M, exceeding the 2024 full-year figure.
What could go wrong? Much of that profit is on paper. Of the US$500.5M net profit, US$390.5M came from investment income tied to its 30.78% stake in Julong Copper — 78.03% of profit attributable to shareholders.
Because Zangge does not control Julong, it cannot consolidate those earnings, and the income only becomes cash once dividends are confirmed. The company has received three dividend payments from Julong in 2026, booked as investing rather than operating cash flow.
What's the context? Julong is China's largest copper mine by registered resources, with 25.88 million tonnes identified. Soaring copper prices — holding near US$13.8K per tonne in June on tight supply and AI data-centre demand — lifted its contribution sharply.
The signal: Zangge's dependence on copper gains it cannot bank is pushing it to shore up its core business. Buying nearly 20 billion tonnes of African potash resources is its clearest move yet to turn volatile investment income into controllable, cash-generating assets.
Read more: sohu.com
