Haha I hope that dream comes true!
I have come across an article written two weeks ago about our offtake partner Yahua. Translation below:
Yahua Group: Lijiagou spodumene mine 1.05 million tons / year mining project approved
Business News, August 07
On the evening of August 3, Yahua Group (002497) announced that the company's shareholding company, Sichuan Dexin Mining Resources Co., Ltd., recently received the Sichuan Provincial Development and Reform Commission “about 1.05 million tons of Lijiagou lithium spodumite in Jinchuan County/ Approval of the approval of the annual mining and selection project. In order to promote the comprehensive utilization of lithium resources, in accordance with the "Administrative Licensing Law", "Regulations on the Approval and Filing of Enterprise Investment Projects", Sichuan Dexin Mining Resources Co., Ltd. was agreed to build a 1.05 million tons/year mining of Lijiagou spodumene mine in Jinchuan County. Selected items. The construction scale of the project is 1.05 million tons of annual mining of spodumene, and the total investment of the project is 115,102,900 yuan.
According to the official website of Yahua Group, Yahua Lithium Industry involves two major sectors: lithium resource development and lithium salt product manufacturing. In terms of lithium resource development, the Lijiagou spodumene mine is the largest spodumene mine in Asia with proven mining rights, with a lithium oxide equivalent of 510,000 tons. In lithium salt manufacturing, it has lithium hydroxide 12000. The production capacity of ton, battery grade lithium carbonate 4000 tons, industrial grade lithium carbonate 2000 tons, lithium dihydrogen phosphate 2500 tons, and battery grade lithium manganate 1000 tons is the largest global lithium hydroxide production capacity, and its products are widely used in batteries. , medicine, metallurgy, petrochemical, glass, nuclear industry and other industries.
In addition, the construction project of the annual production capacity of 20,000 tons of battery-grade lithium carbonate (lithium hydroxide) production line of Yahua Group Yahua Lithium Industry (Ya'an) Co., Ltd. has passed the EIA in May this year. The total investment is 550 million yuan, and it is planned to build a battery-grade lithium carbonate (lithium hydroxide) production line in the Ya'an Economic Development Zone. The project will be constructed in two phases. After the project is completed, it will realize an annual production capacity of 20,000 tons of battery-grade lithium carbonate (lithium hydroxide) and an annual output of 46,000 tons of anhydrous sodium sulfate (Yuanming powder). Among them, after the completion of the first phase, the annual output of battery-grade lithium carbonate is 10,000 tons/year, and the by-product Yuanming powder (anhydrous sodium sulfate) is 23,000 tons/year. After the completion of the second phase, the annual output of battery-grade lithium carbonate is 10,000 tons/year, and the by-product Yuanming powder (anhydrous sodium sulfate) is 23,000 tons/year.
Tianfeng Securities released a research report saying that in terms of resource supply, Yahua Group has reached a long-term supply agreement with Galaxy Lithium, an important lithium concentrate manufacturer in Australia. Currently, the lithium oxide content of lithium concentrate delivered by Galaxy Lithium is stable at 5.7% or more. According to the "Offering Agreement", the company's total purchase amount is 440,000 tons (equivalent to 55,000 tons of lithium carbonate) in 2018-2022. At the same time, the company also announced that the capital increase will increase the shareholding ratio of Australian Core Company (with 100% mining rights of Phoenix Lithium Mine) from 6.73 to 9.7%; and Sichuan Energy Investment Co., Ltd. has completed the acquisition of Sichuan Guoli, and rationalized the management relationship. , laid the foundation for the development of Lijiagou mine. According to the “Evaluation Report on the Mining Rights of Lijiagou Lithium Ore Deposit in Jinchuan County” in 2016, the Lijiagou Mine owned by Guoli after the completion of production is expected to produce 152,900 tons of lithium concentrate per year. The diversified supply of raw materials will provide lithium resources support for the future development of the company's lithium industry.
(Source: Battery Hundred, - battery nets, author: Zhang Qianliang small Jing)
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Nice little mention of CXO there
So to me it seems:
* Yahua are spending approx. AUS$23 million on the Lijiagou spodumene mine, which has a resource of 510,000t Li20, and which is expected to produce 152,900t Li20 pa. Which works out to be about 3.3 years of production before this resource is depleted. Have i interpreted this correctly?
* Yahua are spending roughly AUS$110 million on a lithium carbonate (lithium hydroxide) production line, which will eventually have an annual production capacity of 20,000t of lithium carbonate (lithium hydroxide). Supplying this is GXY's equivalent supply of 55,000t of lithium carbonate over 5 years (2018-2022), so 11,000t of lithium carbonate p.a for 5 years from GXY. Production capacity is 20,000t....
All this tells me CXO will be an important supply of lithium for Yahua (Yahua have said this themselves)
IMO
GLTAH
(20min delay)