SMM6, 12 June: June 6, Rongjie shares (002192) has issued an announcement, its wholly-owned subsidiary Ganzi Rongda Lithium Industry Co., Ltd. (hereinafter referred to as Rongda Lithium Industry Co., Ltd.) has received notice from the Kangding Municipal Government of Sichuan Province on the 6th, agreeing to the start of the Kangding methyl kalium spodumene mine of Ganzi Rongda Lithium Industry Co., Ltd. (hereinafter referred to as Rongda Lithium Industry).

Accordingly, Rongjie finally decided that its methyl kalithiumite mining and separation project was officially put into production on June 10, and a grand production ceremony was held in Tagong Township, Kangding City, Ganzi Prefecture.

Methyl card mine ushered in resumption of production

Public information shows that Rongda lithium industry holds the mining warrant of Kangding methyl kalium pyroxene mine No. 134, which is the second largest in the world and the largest in Asia, with reserves of 28.995 million tons and mining scale of 1.05 million tons / year, with a mining area of 1.14 square kilometers and an average grade of 1.42%. It is the highest quality lithium mineral resource in China.

It is understood that Rongda lithium industry is mainly engaged in the mining and separation business of Kangding methyl kalium pyroxene ore, which is transported to the concentrator after blasting-stripping-secondary crushing, and then the combined grinding-flotation process is used to produce lithium concentrate. Lithium concentrate is mainly sold to downstream lithium salt plants for lithium salt and deep processing products; the downstream customers of lithium salt and deep processing products are mainly lithium battery materials factories, lubricants, super glass and ceramic applications and other related manufacturers.

In addition to the lithium mining and separation project of methyl card, Rongjie Group, the controlling shareholder of the listed company, will invest 16 billion yuan in Chenggan Industrial Park to build the whole industrial chain of lithium energy. the layout includes lithium salt extraction, lithium battery positive and negative electrode materials, lithium battery assembly and other five industrial chain projects; Rongjie Group also plans to layout a new project of metal copper foil for lithium battery in Ganzi Prefecture.

The resumption of labor took a turn for the better last year. Rongjie shares disclosed in November last year, after reaching a preliminary consensus with the Ganzi prefecture government, the focus is on land expropriation and benefit-sharing issues. This is also a difficult problem that has led to the delay in the resumption of production in the lithium industry.

There is also concern about the environmental protection of the project, mainly the environmental facilities that integrate the tailing reservoir of the lithium industry. Rongda lithium industry is mainly rectification of tailings reservoir, experts design rectification and reform plan, so many years in the rectification.

It is reported that the initial estimate of lithium metal in the methyl kalium pyroxene mining area in Ganzi Prefecture is 387.6 billion yuan, and the methyl kalithiumite mining area is located at the junction of Kangding, Yajiang and Daofu counties (cities). Kangding relevant parties pointed out that only the financing of lithium industry Kangding methyl kalium spodumene is expected to reach an annual output value of 800 million yuan, turned over 104 million yuan in taxes.

30,000 tons of lithium concentrate may be produced this year

The first phase capacity of Rongda lithium industry has been completed and put into production in September 2010. after more than 3 years of complete production, it has accumulated more mature mining and separation technology and production experience of lithium mine under high altitude and cold conditions, and the quality of the concentrate is stable.

Lu Bin, general manager of Rongda Lithium Industry, said that after being put into production, it is expected that about 30, 000 tons of lithium concentrate will be produced this year; in the full production year, about 70, 000 tons of lithium concentrate will be produced; and after the mining and separation of lithium mines will be expanded to 1.05 million tons per year, the production of concentrate is expected to be about 200000 tons per year. In 2019, Rongjie Group and Rongjie shares in Chenggan Industrial Park jointly invested in the lithium salt plant phase I project will be put into production.

At present, the lithium concentrate produced by Rongda lithium industry Kangding methyl kalium mining and separation project can not meet its raw material demand, and it is very necessary to expand the production of the concentrator to 1.05 million tons. Rongda lithium industry will immediately restart the construction of 1.05 million tons of spodumene ore concentrator. The move will help overhaul the company's fundamentals and is expected to improve its performance.

Rongjie shares said that the controlling shareholder Rongjie Group and related party BYD in the lithium power new energy layout, and Rongjie shares in the new energy materials industry chain has formed a good docking.

SMM believes that although the previous mining of methyl lithium mine twists and turns, but finally "keep the clouds open to see the moon," the trend. The mining will have a positive impact on the supply of spodumene from China, and will promote domestic smelters to reduce their dependence on imported spodumene from overseas.

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