A-share companies have been looking for lithium overseas. This time it is Zhejiang Huayou Cobalt Co.Ltd(603799) .
Zhejiang Huayou Cobalt Co.Ltd(603799) on the evening of December 22, it was announced that the company planned to acquire the prospect lithium mine in Zimbabwe for us $422 million through its subsidiary Huayou international mining. The lithium mine company has completed the shipment and sales of the first batch of lithium products.
plans to buy lithium ore with us $422 million
According to the announcement, prospect lithium owns 100% interest in Arcadia lithium mine in Zimbabwe. As of October 2021, the JORC (2012) standard resources of Arcadia project announced by prospect company are 72.7 million tons, the grade of lithium oxide is 1.06%, the grade of tantalum pentoxide is 121ppm, the amount of lithium oxide metal is 770000 tons (lithium carbonate equivalent is 1.9 million tons), and the amount of tantalum pentoxide metal is 8800 tons. Source: company announcement
Zhejiang Huayou Cobalt Co.Ltd(603799) disclosed that by the end of 2020, prospect company began small-scale open mining, 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.
According to the optimization feasibility study report on reaching the annual ore processing capacity of 2.4 million tons at one time published by Arcadia project in December 2021, the construction period of the project is 2 years and the production life is 18 years. Through gravity separation + flotation process, the annual output is 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.
The announcement said that the project has obtained the development and construction EIA certificate. After the acquisition of Arcadia project, the company will further improve and optimize the production scale, production time, products and output of the project.
take the high nickel route
Benefiting from the hot new energy industry, Zhejiang Huayou Cobalt Co.Ltd(603799) as a company with an integrated industrial chain from cobalt nickel resource development to lithium battery material manufacturing, relevant actions are frequent.
On November 18, Zhejiang Huayou Cobalt Co.Ltd(603799) signed an agreement with Ningbo Ronbay New Energy Technology Co.Ltd(688005) . From January 1, 2022 to December 31, 2025, Ningbo Ronbay New Energy Technology Co.Ltd(688005) purchased no less than 180000 tons of precursors in Zhejiang Huayou Cobalt Co.Ltd(603799) . Under the condition that Zhejiang Huayou Cobalt Co.Ltd(603799) provides Ningbo Ronbay New Energy Technology Co.Ltd(688005) with a competitive pricing method of metal raw materials and precursor processing fee, both parties expect the procurement volume of precursors to reach 415000 tons.
On November 30, Zhejiang Huayou Cobalt Co.Ltd(603799) signed an agreement with Beijing Easpring Material Technology Co.Ltd(300073) . Under the condition that Zhejiang Huayou Cobalt Co.Ltd(603799) provides Beijing Easpring Material Technology Co.Ltd(300073) with a competitive pricing method for metal raw materials and precursor processing fees, Beijing Easpring Material Technology Co.Ltd(300073) plans to purchase 300000-350000 tons of ternary precursors from the company from 2022 to 2025.
Everbright Securities Company Limited(601788) Wang Zhaohua’s team believes that the cooperation between Zhejiang Huayou Cobalt Co.Ltd(603799) and Beijing Easpring Material Technology Co.Ltd(300073) once again shows that Zhejiang Huayou Cobalt Co.Ltd(603799) high nickel product quality and the advantageous position of upstream resource layout have been recognized in the industry.
Zhejiang Huayou Cobalt Co.Ltd(603799) recently said on the interactive platform that the company’s new energy lithium battery material business is developing towards the technical direction of high nickel and high energy density.
On December 1, Zhejiang Huayou Cobalt Co.Ltd(603799) announced that recently, some production lines of the laterite nickel ore hydrometallurgy project with an annual output of 60000 tons of nickel and 7800 tons of cobalt have completed equipment installation and commissioning, and recently put into trial production, successfully producing the first batch of products. The company has tested that the main performance indexes of the products are qualified.
It is worth mentioning that after the completion of the above US $422 million acquisition plan, Zhejiang Huayou Cobalt Co.Ltd(603799) will be involved in the development of lithium cobalt nickel resources. In the company’s view, the transaction is in line with the company’s strategic development plan during the 14th Five Year Plan period, taking the lithium battery new energy material industry as the core business of key development, and adhering to the development idea of transformation and upgrading of “controlling resources, expanding markets and improving capabilities”.
(China Securities Journal)
