(Yicai) Sept. 15 -- Longking’s shares rose to a nearly two-year high after the Chinese company said it had secured the rights to develop clean energy projects for the domestic and overseas mines of its largest shareholder Zijin Mining Group.

Longking’s shares [SHA: 600388] closed 7.4 percent up at CNY14.10 (USD1.98) apiece in Shanghai today, the highest since December 2023.

The developer of clean electricity projects will invest USD399 million to build a 140-megawatt supporting hydropower station on the Lualaba river in the Democratic Republic of Congo for Zijin’s local mining project, it announced yesterday.

The Fujian-based firm will also install a supporting 220-kilovolt transmission line, with 90 percent of the power generated transmitted 200 kilometers to Kolwezi, where Zijin’s mines are located, and the rest supplied to the local community. The project’s construction work is expected to take three and a half years.

Longking’s wholly owned subsidiary has already acquired an 80 percent stake in a newly established local project company, which will use a build, operate, and transfer project model until January 2049.

Once completed, the project is expected to generate 714 million kilowatt-hours of electricity annually. The electricity price for the mining project will be about 16 US cents per kWh, excluding taxes, while that for the local community will be 10 US cents per kWh, excluding taxes.

Longyan-based Zijin operates in Kolwezi through a local enterprise that is responsible for the Kamoa-Kakula copper mine, the Musonoi copper mine, and the Carrilu cement plant.

In a separate statement yesterday, Longking also announced it will invest nearly CNY2.4 billion (USD330 million) to build an integrated energy plant to support a lithium mining project owned by Zijin’s unit in the high-altitude and sparsely populated Ali region of China’s Xizang Autonomous Region.

The project will include three main parts: photovoltaic generation, electrochemical energy storage, and diesel generation for peak shaving, which reduces how much power is used at the busiest times.

It is expected to commence operations by the second quarter of next year, aiming to ensure a stable energy supply for Zijin’s lithium salt lake resource extraction facilities in the area.

Longking said it will use artificial intelligence technology in the project to manage and get the most out of clean energy and make the power system more flexible. It will also use drones and a smart online platform to help run the project in the remote area.

Zijin became Longking’s major shareholder in May 2022, and has increased its holding since then. As of June 30, it owned nearly 25 percent of the firm.

Editor: Futura Costaglione