AMAL announcements and articles, page-53

Another one from HK

Baowei involved in lithium resources to meet the huge market demand

Hong Kong, April 25, 2017 - China has been plagued by the haze problem in recent years. During his two sessions, Premier Li Keqiang promised to the people of the whole country that he should " Coal pollution, promote pollution control, strengthen the vehicle exhaust treatment, encourage the use of clean energy vehicles and other aspects of the deployment.
The market is expected to promote the green industry will become the country's new energy development goals.

New energy vehicles to drive lithium demand According

to the "energy and new energy technology road map" forecast, 2030 China's new energy vehicle sales will reach 40% of total car sales, showing explosive growth. In recent years, the development of hybrid cars and electric vehicles, such as Tesla, Google and Apple's electric cars have been attracting attention, so that the relevant parts of the battery sought after by investors, increased battery demand and associated with raw lithium (Lithium) substantial price increases. As lithium batteries than other materials to store more power and lighter, power loss is also slow, lithium demand in recent years increased significantly. More than a lithium battery concept A shares in recent months also heard the song and dance, in the tripod tripod (002491.CN), the times million Heng (600241.CN), Nordisk shares (600110.CN), Guoguang Electric (002045.CN) and Binbin shares (600884.CN) recorded a substantial increase.

Although lithium is a very common element, but need from Yanping, salt lake and other mining, and from the mineral out of lithium. Lithium resources in the world is highly scarce, the main reserves and production capacity by the United States, Australia, Latin America and a few other multinational corporations monopoly. Although China has a certain reserves, but limited by salt lake brine extraction of lithium technology bottlenecks difficult to mass production, it has long been heavily dependent on lithium ore imports. Lithium carbonate can be widely used in mobile phones, digital products, military, industrial and home large-capacity energy storage systems and other fields, and high-purity power lithium battery is a hybrid electric vehicle, pure Electric car core material.

China now has more than 10 lithium carbonate, lithium hydroxide processing plant, the current new and to be built lithium carbonate plant will add more than 80,000 tons of processing capacity. Production of one ton of lithium carbonate needs 7. 8 tons of 6% grade of lithium powder, the amount of lithium carbonate in the country in 2015 nearly 10 million tons, the total demand for lithium carbonate in 2020 is expected to about 300,000 tons, the required high-quality lithium powder ore more than 2 million per year Ton. Due to strong demand, coupled with a serious shortage of resources, leading to lithium products and lithium ore prices rose year after year.

Rio Tinto upstream lithium resources business in

China about 76% of the lithium is to rely on overseas imports, and lithium battery manufacturers will be subject to the supply of the upper reaches of the core lithium, power battery quality requirements, the quality of the upper reaches of the quality of ore increased The Therefore, with the value of economic exploitation of high quality lithium ore resources is very rare.

Mainly engaged in international metal trade, mineral resources investment, exploration and development of Po Wei Holdings (00024.HK) spotted the market gap, grasp the new opportunities, determined to open up lithium resources business. ("BAL") and Alliance Mineral Assets Limited ("AMAL") (SGX: 40F) listed on the KLCI board of the SGX-STF, as well as Tawana, which is listed on the Australian Exchange, announced last week that its wholly-owned subsidiary, Baowei Materials Co., ("Lithco"), a wholly-owned subsidiary of Land NL ("Tawana") (ASX: TAW), signed an exclusive underwriting lithium concentrate contract.

Upon completion of the signing of the contract, BCL will be the western Australia Bald Hill (Bald Hill) produced by the lithium concentrate for five years of exclusive underwriting and the right to five years after the purchase of priority.According to the contract, BCL will purchase a high grade spodum concentrate of US $ 200 million worth of US $ 200 million (ie US $ 1,000 per dry ton) at the fixed price in February, Baowei optimistic about the next few years spodum concentrate prices. While BCL will pay an advance payment of A $ 25 million in installments.

The Bard mountain is known for its high grade spodumene and tantalum ore, with a mineralization area of 461. 5 square kilometers, and is applying to the relevant authorities for an additional 319 square kilometers of land. The lithium project also has a good infrastructure, including transportation, water, electricity and transformation of the applicable concentrator, to provide protection for the production. AMAL and Tawana will strengthen their exploration to increase tantalum and lithium resources and plan to start production by the end of 2017, with a 6% grade of lithium concentrate in the first quarter of 2018, which will be the smallest in Australia Concentrate ore area.

Foreign media reported that since last year the average price of lithium rose 60%; from 2014 onwards, lithium prices soared three times. China's rally is even more alarming, the price of lithium carbonate batteries for electric vehicles between nine months, from $ 7,000 per ton to more than $ 20,000. It is understood that Baowei management optimistic about the prospects of global lithium resources, will put resources to actively develop lithium concentrate procurement, lithium carbonate processing and sales business, and plans to invest in China an annual capacity of 10,000 tons of lithium carbonate plant, Coupled with the future will have a stable supply of lithium concentrate, lithium resources business is expected to open up new revenue sources for the Group.