(Eastern Iron), an Australian miner, signed a memorandum of cooperation with Sichuan Yahua International Investment and Development Co., Ltd., a wholly-owned subsidiary of Sichuan Yahua Enterprise Co., Ltd., to jointly develop the Trigg Hill tantalum-lithium project.
It is reported that the two sides will set up a joint venture for the exploration and development of the project, and Ya Hua Group will be granted the preemptive right to purchase lithium ore in the joint venture company.
Ya Hua Group is one of the largest producers of lithium hydroxide and lithium carbonate in China, with a strong customer base including Tesla, BYD Automotive, Zhenhua Yihua and Sinopec.
Oriental Iron and Steel Company Limited ("Oriental Iron and Steel" or the "Company") is pleased to announce that it has signed a non-binding memorandum of understanding (the "Memorandum of understanding") with Yahua International Investment and Development Co., Ltd., a wholly-owned subsidiary of Sichuan Yahua Industrial Group Co., Ltd., to establish a strategic partnership for the acquisition and development of the lithium project.
Yahhua and the Company signed a strategic partnership agreement within 3 months after signing the MOU to establish a long-term strategic partnership to supply spodumene concentrate and to acquire and develop lithium projects in Australia and other countries except China.
Yahua and Eastern Iron have formed a joint venture ("JV") to acquire and develop lithium projects in Australia and other countries outside China. The joint venture will be established before Eastern Iron acquires the lithium project or when the company completes the agreed workload of the lithium project.
Following the completion of the acquisition of the Trigg Hill Tantalum Lithium Project ("Trigg Hill") and the determination of the initial exploration objectives of Trigg Hill, the parties intend to establish a joint venture for the exploration and development of the project; Ya Hua will be granted the right of preemption to purchase products from any joint venture project, including the Trigg Hill project.
About Yahua Group
Yahua Group is an A-share listed company on the Shenzhen Stock Exchange of China, with a market capitalization of about 36.3 billion yuan (A $7.7 billion). It is mainly engaged in the manufacture and sale of civil explosives and lithium salt products.
Yahua Group is one of the leading producers of lithium hydroxide and lithium carbonate in China, with 43000 tons / year of lithium carbonate, lithium hydroxide and other fuel refineries' existing business lithium products, and is further expanding the production of 50000 tons / year of lithium hydroxide and 1000 tons / year of lithium metal by 2025.
Ya Hua Group has a strong customer base, including Tesla, BYD Automobile, Zhenhua Yihua and Sinopec. Yahua is a wholly-owned subsidiary of Yahua Group and the carrier of investment for Yahua Group.
Yahua is the main shareholder of Core Lithium Co., Ltd., and the main off-take customer of Orocobre Co., Ltd. (formerly Galaxy Resources Co., Ltd.).
Trigg Hill Tantalum Lithium Project
The Trigg Hill project is located in East Pilbara, Western Australia, about 75 km southeast of Pilgangula Lithium Mine of Pilbara Mining Co., Ltd., and 77 km southeast of Wogina Lithium-Tantalum Mine. The existing port is Port Hedland, about 225km from the road.
The Trigg Hill mine is an old tantalum and tin mine that was operated in the 1960s and early 1980s. The Company has signed a binding agreement to acquire the 100% interest in the Trigg Hill project.
