View attachment 1623178
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I thought I’d stick a bit of ‘easy access’ Ningbo Shanshan info into a less noisy place in case anyone new wanders by.
This story from
https://www.mining.com/web/firms-feeding-chinas-battery-revolution/ on April 9, 2018 introduces the company as a product of the ‘old to new’ economy pivot .
“Ningbo Shanshan Co.
- Company has transformed itself from clothing manufacturer to lithium-ion heavyweight; top producer of cathode, and No. 2 in anode
- More than 120,000 tons of battery material capacity
- Listed in Shanghai; $3.5 billion market cap
- Based in Ningbo in eastern Zhejiang province
- http://www.ssgf.net/
Formerly a maker of shirts and suits for gentlemen, after an old-to-new economy pivot it’s now an emerging major producer of battery materials.
In a private placement last year, it bought 1.8 billion yuan of shares in China Moly that will fund expansion of the latter’s Congo cobalt mine, in exchange for rights to the extra output.
It plans to spend 5 billion yuan on a 100,000-ton production base for battery materials in central Hunan province, to be completed by 2025. According to its website, it has anode capacity of 43,000 tons, 50,000 tons of cathode and 30,000 tons of electrolyte capacity.”
Notably the company intends to process 200,000 tonnes per annum by 2025 - from two 100,000tpa plants; the first in Baotou, in North China's Inner Mongolia Autonomous Region, and second, (already processing whilst still under construction) in Changsha, in south-central China's Hunan province.
https://www.yicaiglobal.com/news/sh...-million-to-build-a-battery-plant-in-changsha
MORE BACKGROUND :
NSS was a contender in late 2016 to buy Julio Ponce Lerou’s stake in the mighty SQM -nearly a quarter of the company- but Mr Ponce decided to keep his shares after all. (Links elsewhere on HC DYOR)
It also successfully sued Tianqi in 2016 for supplying it with inferior lithium carbonate;
http://www.asianmetal.com/news/data/1366481/ also HC post:
39236929
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Ningbo Shanshan Corporation revealed on 25 July that the case on lithium carbonate between Hunan Shanshan New Energy Co., Ltd. (Shanshan), its subsidiary, and Chengdu Tinaqi Lithium Co., Ltd. (Tianqi) lasting for a year has come to an end with the final judgement requiring Tinaqi Lithium to compensate RMB 50,164,150 to Shanshan and to refund prepayment of RMB5,000,000 and interest.
Google says (on today’s rates) Tianqi paid compensation of close to AUS$10.5 million (50,164,150 Chinese Yuan = AU$10,414,762.84).......And refunded AU$1,037,650
COBALT AND COPPER AND CMOC ALLIANCE :
The mining.com story above notes that in 2017 in a private placement Ningbo Shanshan :.... “
bought 1.8 billion yuan of shares in China Moly that will fund expansion of the latter’s Congo cobalt mine, in exchange for rights to the extra output.”
(Google says that’s AUS$373,716,000.)
Here’s a bit more on that purchase and what it means:
-July 13, 2017 “
the latter (NSS)will be given priority to purchase cobalt products if production is expanded at Tenke Fungurume’s copper-cobalt mine in the Democratic Republic of Congo (DRC)....
Through the framework agreement, CMOC and Ningbo Shanshan will also seek to establish a strategic partnership relation for the acquisition of cobalt and lithium resources...
https://do not advertise external s...products-if-Tenke-production-is-expanded.html
-July 13, 2017
https://www.yicaiglobal.com/news/ni...to-secure-lithium-battery-raw-material-supply - says the shareholding ratio is not mentioned
Also that “
Both parties will also consult to establish strategic partnership when purchasing, acquiring and investing in metal resource recovery projects such as cobalt and lithium in the future.”
China Molybdenum (CMOC ) looks like it’s been quite active around the place recently buying what seems to be a Swiss-based metals trading fund formerly known as ‘Louis Dreyfus Company Metals’
https://www.linkedin.com/company/ixm
Dec 5, 2018 :
https://do not advertise external s...XM-in-495mln-fund-buyout-details-profits.html
China Molybdenum Co will take direct control of metals trader IXM in a $495-million buyout of a fund it set up to originally purchase the firm from Louis Dreyfus, according to a notice issued on the Hong Kong Stock Exchange on Tuesday December 4.
.....It will mean that IXM will become a direct subsidiary of China Molybdenum ........IXM has grown net assets from $378,397,000 as at 30 September 2017 to the $449,775,000 as at 30 September 2018. The amount China Molybdenum are paying for IXM reflects this higher book value plus profits, it said.....
IXM, which until this year had been a Louis Dreyfus unit since the agricultural trading giant acquired the copper concentrates book of Mitsui & Co in 2006, did not respond to a request for comment from Fastmarkets on December 4.
China Molybdenum, one of the five largest molybdenum miners in the world, was a relative unknown amongst base metal circles until a multi-billion dollar deal to buy the Tenke Fungurume copper-cobalt mega-mine from Freeport McMoRan and Lundin.
And finally a bit more on the multi-billion dollar deal at
Tenke
-Jan 18, 2019 :
https://www.reuters.com/article/us-...tenke-copper-mine-to-80-percent-idUSKCN1PC1GN
China Molybdenum Co Ltd said on Friday it had agreed to buy a holding company for $1.14 billion in order to increase its control in Democratic Republic of Congo’s massive Tenke copper mine.
China Moly, already the majority owner of Tenke, will have an 80 percent stake in the mine after the acquisition of BHR Newwood DRC Holdings Ltd, a holding company set up by private equity firm BHR to buy a 24 percent stake in Tenke in 2017, China Moly said in a filing to the Shanghai stock exchange.
China Moly previously bought 56 percent stake in Tenke for $2.65 billion in 2016 from Freeport McMoRan Inc.
..It would be interesting to know the NSS CMOC “
strategic partnership relation for the acquisition of cobalt and lithium resources” is going .
I wonder if China Moly is the recent mystery buyer at AJM ?
