Securities code: 002460 securities abbreviation: Ganfeng Lithium Co.Ltd(002460) No.: pro 2022-005
Ganfeng Lithium Co.Ltd(002460)
Announcement on the signing of cooperation agreement with PMI and the progress of mtmarion project
The company and all members of its board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions. Special tips:
1. All parties to the contract are capable of performing the contract, but in the process of performing the contract, in case of the influence of unpredictable or force majeure factors such as policy and market environment, the risk of failure to perform the contract normally may be caused.
2. The signing of this contract will have a positive impact on the company’s business performance in 2022. 1、 Contract signing overview
Recently, Ganfeng Lithium Co.Ltd(002460) (hereinafter referred to as “the company”) and its wholly-owned subsidiary GFL International Co., Limited (hereinafter referred to as “Ganfeng international”) signed a cooperation agreement (hereinafter referred to as “the contract”) with processminerals International Pty Ltd (hereinafter referred to as “PMI”), which agreed that PMI would provide the company with spodumene underwritten in MT Marion spodumene project, The lithium compound products agreed by both parties shall be processed by the company and sold by the company.
2、 Basic information of counterparty
PMI, a wholly-owned subsidiary of Australian listed company mineral resources Limited (hereinafter referred to as “MRL”), was established on March 18, 1994 with its registered address at lever1, 1-7 slat Road, Applecross, West Australia. PMI’s main business is mining services, mineral products production and infrastructure construction. Up to now, the company and PMI each hold 50% equity of reed industrial minerals Pty Ltd (hereinafter referred to as “rim”) in Australia. Rim’s MT Marion spodumene project is one of the largest spodumene manufacturers in the world. Both the company and PMI enjoy the partial underwriting right of MT Marion spodumene project, Both parties shall purchase spodumene from MT Marion spodumene project at the same time according to the underwriting proportion.
PMI has no relationship with the company, actual controllers, directors, supervisors and senior managers in terms of property rights, business, assets, creditor’s rights and debts, personnel, etc.
3、 Main contents of the contract
1. Main contents of the contract: after PMI implements its underwriting right in MT Marion spodumene project, PMI will provide this part of the underwriting spodumene to the company, which will be processed into lithium compound products agreed by both parties and sold by the company;
2. Sales price of lithium compound products: the sales price of lithium compound products agreed by both parties shall be subject to the market price;
3. Effective time and performance period of the contract: the effective time and performance period agreed by both parties shall prevail.
4、 Progress of mtmarion spodumene project
Recently, the company received a notice from rim that RIM’s management is considering the technical transformation and expansion of the capacity of MT Marion spodumene project through the optimization of production process and the development of contact minerals. The expansion project is preliminarily expected to be put into operation in the second half of 2022, and the original capacity scale is expected to increase by 10-15%. In addition, the capacity of contact minerals will be increased, It is estimated that an additional 10-15% capacity will be added. The specific expansion scale depends on the process optimization results and the actual situation of the contact minerals.
5、 Impact on the company
This contract is the cooperation reached between the company and PMI in the attitude of mutual benefit and win-win results and after fully considering the current lithium market situation. The signing of this contract will not affect the implementation of the company’s underwriting right in MT Marion spodumene project. The company and PMI have the ability to perform this contract in terms of capital, personnel, technology and existing production capacity. The signing of this contract is conducive to strengthening the long-term and stable cooperative relationship between the company and PMI, improving the sustainable profitability of the company and the long-term development of the company.
The signing of this contract will have a positive impact on the company’s business performance in 2022.
The performance of this contract has no impact on the independence of the company’s business. The company has no relationship with the counterparty.
6、 Risk tips
All parties to the contract are capable of performing the contract, but in the process of performing the contract, in case of the influence of unpredictable or force majeure factors such as policy and market environment, the risk of failure to perform the contract normally may be caused. Please invest rationally and pay attention to investment risks.
It is hereby announced.
Ganfeng Lithium Co.Ltd(002460) board of directors
February 9, 2022
