Griffin Mining resumes operations at Caijiaying Mine following regulatory approval

Griffin Mining Limited, a prominent name on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM), has resumed mining and processing activities at its Caijiaying Zinc Gold Mine in Hebei Province, China. The operations recommenced on 1 January 2025 following approval from the Emergency Response Bureau granted on 30 December 2024.

The shutdown, initiated after a contractor accident in October 2024, marked an unprecedented halt in the mine’s activities. Chairman Mladen Ninkov expressed his relief and appreciation for the teams whose tireless efforts facilitated the resumption of operations. He stated that the Company is poised for an uninterrupted and prosperous operational year ahead.

Caijiaying Mine: A Pillar of Multi-Metal Production

Located approximately 250 kilometres northwest of Beijing, the Caijiaying Mine plays a vital role in Griffin Mining’s portfolio. The site’s strategic location, enhanced by infrastructure such as freeway access, water reserves, high-voltage power lines, and broadband connectivity, positions it as a key asset. The mine’s proximity to Beijing and its connection via a high-speed rail link add further logistical advantages.

Since its commissioning in 2005, Caijiaying has emerged as a major producer of zinc, alongside gold, silver, and lead concentrates. The mine’s processing capacity of 1.5 million tonnes per annum underscores its significance in China’s multi-metal mining landscape. Griffin has invested over $400 million in its development and ongoing operations, with the bulk of funding sourced internally.

Expanding Horizons: Sustained Growth Through New Zones

The Caijiaying Mine continues to evolve, with Griffin Mining focusing on expansion projects to sustain and enhance production. Zone III, the mine’s primary production area, consistently operates at its full capacity of 1.5 million tonnes of ore annually. Development efforts are now underway in Zone II and the intermediary areas between Zones II and III.

A recent Joint Ore Reserves Committee (JORC) report revealed a mineral resource estimate of 83 million tonnes across Zones II and III, equating to over 45 years of operational viability at current throughput rates. The ongoing exploration underscores the Company’s commitment to extending the mine’s life while maintaining high output levels.

A Joint Venture with a Strong Foundation

Griffin Mining operates the Caijiaying Mine through its 88.8% stake in Hebei Hua Ao, a joint venture formed under Chinese law. Initially established with a 60% share, Griffin expanded its ownership in 2012 while also extending the venture’s operational term to October 2037. These strategic moves ensured the venture’s long-term viability and solidified Griffin’s leadership in the project.

The joint venture has now transitioned to comply with recent regulatory requirements, converting into a limited liability equity company with indefinite life as of January 2025. This compliance reflects Griffin’s proactive approach to adhering to Chinese regulations and fostering strong relationships with local and national authorities.

Strategic Growth Beyond Caijiaying

In addition to its primary asset, Griffin Mining continues to explore new opportunities through its second joint venture, Hebei Anglo, which holds mineral rights beyond the original licence area. The company remains focused on identifying and acquiring projects with the potential for high returns, ensuring a diversified and robust portfolio.

Griffin Mining’s recommencement of operations at the Caijiaying Mine signals a positive trajectory for the company as it enters 2025. With a proven operational framework, an expanding resource base, and a strong commitment to sustainable growth, the Company is well-positioned to deliver value for shareholders and maintain its leadership in the multi-metal mining sector.