The case of Zhejiang Huayou Cobalt Co.Ltd(603799) once again reaffirms the value of lithium resources.
On the evening of December 22, the company announced that it planned to acquire 87% equity of Zimbabwe prospect lithium mining company held by Singapore pmpl and related creditor’s rights under the inter company loan agreement through its subsidiary Huayou international mining for us $378 million; At the same time, the company also plans to acquire 6% equity of prospect lithium mining company held by natural person Kingston kajese and 7% equity of prospect lithium mining company held by tamari trust family trust for us $44 million.
The total amount of this transaction is US $422 million. After the acquisition, Huayou international mining will hold 100% equity of prospect lithium mining company and related creditor’s rights under the inter company loan agreement.
Prospect lithium mining company is one of the few choices for Zhejiang Huayou Cobalt Co.Ltd(603799) and other Chinese enterprises at this stage.
At the beginning of August this year, Zijin Mining Group Company Limited(601899) reported that it wanted to lay out lithium assets. This newspaper reported that the options available for Chinese enterprises to acquire included relatively high-quality lithium assets in Canada and some African countries.
Among them, the African region, including Manono in the Democratic Republic of the Congo, Arcadia in Zimbabwe and goulamina in Mali, is available. The first two companies belong to prospect resources in Australia and avz mining, and have signed long-term off purchase agreements with many Chinese listed companies such as Ganfeng Lithium Co.Ltd(002460) , Sinomine Resource Group Co.Ltd(002738) .
Finally, Zijin Mining Group Company Limited(601899) chose to acquire Neo lithium Corp (new lithium company) in Canada. Its core asset is Tres quebradas Salar lithium salt lake project located in the “lithium triangle” of South America.
In September this year, Tianhua times, a joint-stock company of Contemporary Amperex Technology Co.Limited(300750) , obtained 24% of the above-mentioned Manono project company in the Republic of Congo through a capital injection of US $240 million.
The prospect lithium company selected by Zhejiang Huayou Cobalt Co.Ltd(603799) this time is the owner of 100% equity of Arcadia lithium mine in Zimbabwe.
It should be noted that Arcadia lithium mine is not an unknown person. Before Zhejiang Huayou Cobalt Co.Ltd(603799) announced the acquisition, it has attracted the attention of many Chinese institutions and is expected to become one of the main lithium concentrate supply increments in 2022.
Zhejiang Huayou Cobalt Co.Ltd(603799) the announcement pointed out that the prospect company has started small-scale open mining at the end of 2020, operated a small-scale lithium permeable feldspar pilot production line on site, and completed the shipment and sales of the first batch of products in October.
In addition, according to the one-time optimization feasibility study report to achieve an annual ore processing capacity of 2.4 million tons published in December this year, it can achieve an annual output of 147000 tons of spodumene concentrate, 94000 tons of technical lithium permeable feldspar concentrate, 24000 tons of chemical lithium permeable feldspar concentrate and 0.3 tons of tantalum concentrate.
Among them, the main difference between technical grade and chemical grade lithium concentrate lies in the content and particle size of lithium oxide and iron. The former is sold in the glass and ceramic market, while the latter can be converted into lithium salt products such as lithium carbonate, lithium hydroxide and metal lithium, and can be directly applied to the preparation of lithium iron phosphate cathode materials.
Compared with other lithium resources, Arcadia lithium mine also has certain cost advantages.
Haitong Securities Company Limited(600837) in April this year, citing the feasibility study report released by prospect lithium in 2019, the average FOB cash operating cost of lithium ore produced by Arcadia during the mining life is $344 / ton.
Compared with other lithium mines in the world, it is at a low level.
If the acquisition of Zhejiang Huayou Cobalt Co.Ltd(603799) is completed as scheduled, the overseas high-quality lithium resources have been carved up, and the next latecomers will have no more other options
(21st Century Business Herald)
