“Lithium” has traveled all over the world, and another company has entered lithium mine!
On the evening of February 28, Western Mining Co.Ltd(601168) announced that it planned to transfer 27% equity of Qinghai Dongtai Jinaier lithium resources Co., Ltd. (hereinafter referred to as lithium resources company) held by the controlling shareholder xikuang group for RMB 3.343 billion.
On February 28, Western Mining Co.Ltd(601168) rose 9.32% to 16.30 yuan / share.
lithium resources company’s performance has entered an explosive period
The announcement disclosed that the lithium resources company is mainly engaged in the development of lithium resources in East Taijinar Salt Lake and the processing and production of lithium carbonate products. As of July 31, 2018, the reserve of lithium chloride in East Taijinar Salt Lake was 210600 tons.
The lithium boron potassium comprehensive development project of lithium resources company was approved and filed in Qinghai Provincial Economic and Information Technology Commission in July 2016, with a total investment of 3.286 billion yuan. It will build production units and supporting projects with an annual output of 30000 tons of lithium carbonate, 300000 tons of potassium fertilizer (potassium sulfate) and 30000 tons of boric acid.
Western Mining Co.Ltd(601168) disclosed that at present, lithium resources company and its holding subsidiary Qinghai lithium have operated a production line with an annual output of 20000 tons of lithium carbonate, and its annual output of 30000 tons of lithium carbonate has been filed with relevant government departments. Lithium resources company can build another production line with an annual output of 10000 tons of lithium carbonate within one year.
In the first 11 months of 2021, lithium resources produced 9510 tons of battery grade lithium carbonate.
In Western Mining Co.Ltd(601168) view, lithium resources company has many advantages. The announcement pointed out that the lithium resources company has the mining right of East Taijinar lake, and all the “lithium” required is “self-sufficient” without high cost external procurement, so that its production cost is low and its market competitiveness is strong.
At the same time, Qinghai lithium industry is one of the first enterprises in China to overcome the technical problem of “magnesium lithium separation” of lithium extraction from salt lakes. The quality of lithium carbonate products produced by Qinghai lithium industry is stable and reaches the battery level standard.
Therefore, Western Mining Co.Ltd(601168) said that with the gradual release of the capacity of lithium resources company, its operating performance has rapidly entered the explosive period. This investment will bring long-term profit contribution to the company and become an important profit growth point of the company.
lithium carbonate prices continue to rise
The prosperity of the new energy track is high, and many listed companies actively layout.
On the evening of February 25, Sinomine Resource Group Co.Ltd(002738) announced that the company reviewed and approved the proposal on Jiangxi Chunpeng Lithium Industry Co., Ltd. investing in the construction of 35000 tons of high-purity lithium salt project. The company plans to invest in the construction of 35000 tons of high-purity lithium salt project through its wholly-owned company Chunpeng lithium industry, with a total investment of about 1 billion yuan.
Sinomine Resource Group Co.Ltd(002738) lithium salt phase I “25000 tons of battery grade lithium hydroxide and battery grade lithium carbonate” project was put into operation in August 2021. According to Sinomine Resource Group Co.Ltd(002738) it seems that the company has gained valuable construction management experience through the construction of 25000 ton lithium salt project, and the relevant production process technology and production management organization mechanism have been comprehensively tested. After the products are put on the market, they are recognized by the leading enterprises in the market, and the subsequent production and energy release of the project will bring good benefits to the company. Based on the successful construction experience of lithium salt phase I project, it is expected that the new 35000 ton high-purity lithium salt phase II project will be implemented and completed more smoothly and efficiently.
Previously, the Zijin Mining Group Company Limited(601899) official website disclosed that katamba mining, a joint venture with cominiere, held a shareholders’ meeting to launch Zijin Mining Group Company Limited(601899) the first lithium exploration project.
Behind the accelerated development of lithium resources by listed companies, the price of lithium salt has risen rapidly. According to the data of Shanghai Nonferrous Metals network, on February 28, the average price of battery grade lithium carbonate reached 468000 yuan / ton.
Guotai Junan Securities Co.Ltd(601211) february 27 published a research report that since the Spring Festival, the price trend of battery grade lithium carbonate has continued to be rapid. In just two weeks, the price has increased by more than 50000 yuan / ton compared with that before the festival. In the short term, the supply and demand of lithium resources continue to be tight, and the spot price of lithium is expected to be easy to rise but difficult to fall in the short term.
