The self supply rate of lithium concentrate has become one of the important indicators of the lithium salt company, and Sichuan Yahua Industrial Group Co.Ltd(002497) ( Sichuan Yahua Industrial Group Co.Ltd(002497) . SZ) through the acquisition of 60% equity of the wholly-owned subsidiary of super lithium company (hereinafter referred to as the “joint venture”), it is not only to meet the expansion needs of 50000 tons of lithium salt in Ya’an phase III in the future, but also the first step for the company to take independent control of lithium ore Sichuan Yahua Industrial Group Co.Ltd(002497) relevant person in charge told the financial associated press. According to the reporter, the initial lithium carbonate equivalent of the two lithium ore projects of the joint venture is about 500000 tons, and the capacity of the first phase of lithium concentrate is expected to be completed in 2024.
On the afternoon of April 17, Sichuan Yahua Industrial Group Co.Ltd(002497) disclosure announcement showed that Yahua international, a wholly-owned subsidiary of the company, plans to invest $5 million to subscribe for 212766 million units of shares of ultra lithium Inc., accounting for about 13.23% of the current total share capital of ultra lithium Inc. At the same time, Yahua international acquired 60% of the equity of the wholly-owned subsidiary of super lithium company in cash, and controlled its Fugen lake hard rock spodumene lithium project and Georgia lake hard rock spodumene lithium project.
Obviously, the capital market pays more attention to the joint venture in which Sichuan Yahua Industrial Group Co.Ltd(002497) obtains control than the subscription of shares of ultra lithium company. According to the announcement, the estimated resource of Fugen Lake project is 6.4 million tons according to the surface outcrop area, and the average grade of lithium oxide is 2.2%. It is preliminarily estimated that the equivalent of lithium oxide is about 140000 tons; According to the surface outcrop area, the estimated resource of the Georgia Lake project mine is 5.4 million tons, and the average grade of lithium oxide is 1.2%. It is preliminarily estimated that the equivalent of lithium oxide is about 65000 tons.
According to the reporter’s simple calculation, the preliminary lithium oxide equivalent of the above two lithium mine projects is about 205000 tons. If the conversion coefficient of LCE of lithium oxide and lithium carbonate equivalent is 1:2.47, it is equivalent to about 500000 tons of lithium carbonate equivalent. According to the analysis of a broker, Sichuan Yahua Industrial Group Co.Ltd(002497) will own 13.23% equity at the level of listed companies of ultra lithium companies and 60% equity at the level of joint venture projects. Sichuan Yahua Industrial Group Co.Ltd(002497) will own 65.29% equity in Fugen lake and Georgia lithium projects, corresponding to about 330000 tons of LCE of Sichuan Yahua Industrial Group Co.Ltd(002497) equity resources.
Sichuan Yahua Industrial Group Co.Ltd(002497) further stated in the announcement that according to the preliminary results, the lithium concentrate mining and dressing plant with 6% lithium oxide per year will be designed and built in the first phase, and the second phase will be built in the later phase to expand the production capacity to 400000 tons (reporter’s note: about 50000 tons of lithium carbonate equivalent). The financial Associated Press reporter learned from the relevant person in charge of Sichuan Yahua Industrial Group Co.Ltd(002497) that the first phase of lithium concentrate production capacity is expected to be completed in 2024.
In addition, ultra lithium owns lithium brine mines in Argentina and copper and gold mining rights and exploration rights in many regions of Argentina. Among them, the Laguna Salt Lake project in Catamarca province of Argentina consists of three mining licenses, with a mining right area of 117 square kilometers and a lithium ion grade of up to 1270mg / L. according to the analysis of the above-mentioned brokers, the Laguna Verde Salt Lake ( Sichuan Yahua Industrial Group Co.Ltd(002497) equity 13.23%) in Argentina is in the exploration stage, and the exploration work is expected to be completed in the second quarter of this year.
On this basis, Sichuan Yahua Industrial Group Co.Ltd(002497) pointed out in the announcement that super lithium will continue to seek acquisition opportunities for high-quality hard rock lithium resources for the joint venture, such as lithium bearing pegmatite resources with an average grade of 1.0-1.2% or higher, and continue to explore, discover and acquire more Canadian lithium resources for the joint venture.
Before the independent control of lithium resources is put into operation, according to the research activity table disclosed by Sichuan Yahua Industrial Group Co.Ltd(002497) recently, the lithium concentrate underwriting agreement signed at present can meet the company’s lithium salt production needs in 2022, including the existing 43000 tons of comprehensive lithium salt production capacity and the 30000 tons of battery grade lithium hydroxide production capacity expected to be completed and put into operation by the end of this year.
