Shengtun Mining Industry plans to build a new energy material project with a production capacity of 300000 tons of battery-grade iron phosphate in 6.2 billion.

On the evening of September 23rd, Shengtun Mining (600711) announced that it plans to invest in the construction of a new energy material project with an annual production capacity of 300000 tons of battery-grade nickel sulfate, 300000 tons of battery-grade ferric phosphate and 10,000 tons of metal-grade cobalt products in Fuquan City, Qiannan Prefecture, Guizhou Province. the total investment amount is expected to be 6.19 billion yuan, the main body of which is the company's wholly-owned grandson company Guizhou Shengtun New material Technology Co., Ltd.

The announcement shows that the project uses ferronickel, high-grade nickel matte, nickel concentrate and crude cobalt hydroxide as raw materials to produce battery-grade nickel sulfate, cobalt sulfate, ferric phosphate and cobalt tetroxide. by-products produce precious metals, ammonium sulfate, sodium sulfate, concentrated sulfuric acid, iron by-products and so on.

The total construction period of the project is three years, which is divided into two phases. Starting from the construction of nickel sulfate system, the project will build production facilities such as nickel sulfate, cobalt products and ferric phosphate by stages, and promote the construction and production of the project in an orderly and steady manner. The company will arrange the progress of investment funds according to the progress of the project.

Data show that Shengtun Mining began to distribute energy metals such as nickel, copper and cobalt since 2016, and its main business and profit sources gradually focused from basic metals business to energy metals. The company predicts that the demand for battery energy metal materials will continue to grow at a high speed in the next three years: the new energy industry is the representative force of the new economic growth force, and it is one of the fastest growing industries in the global economy in the past five years. It is also the main battlefield for countries all over the world to compete for the dominance of the new energy revolution. China attaches great importance to the development of new energy materials and new energy vehicles, and will further coordinate a series of policies and measures to speed up the development of new energy vehicles, and further improve the protection system of lithium, cobalt and nickel. In the first half of 2021, the new energy vehicle industry continued the development trend of nearly three years, and began to accelerate the continuous production. With the further promotion of large-scale expansion projects of battery factories and material plants, new energy batteries have begun to develop from GWH era to TWH era. The production capacity of battery materials such as lithium iron phosphate, nickel sulfate and cobalt sulfate is expanding rapidly, and the development speed of the industry is further accelerated.

According to the calculation of Shengtun Mining Industry, assuming that the electric nickel price is 130000 yuan / t and the electric cobalt price is 300000 yuan / t, the procurement costs of raw material nickel sulphide concentrate, high matte nickel, nickel iron and cobalt hydroxide are calculated according to the current market processing fee or discount rate, the sales income of the main products of nickel sulfate, ferric phosphate and cobalt materials is calculated according to the current market premium rate, and the production auxiliary material cost and energy factor cost are calculated according to the current market price. According to the current market price, the by-product sales income is reduced by 10-20%. The annual operating income of the project is 15.341 billion yuan, and the annual net profit is 1.321 billion yuan.

Battery net noted that in the first half of this year, benefiting from the rapid development of ternary materials in the new energy vehicle industry, Shengtun Mining performance exploded: revenue of 23.138 billion yuan, an increase of 4.46% over the same period last year; net profit of 713 million yuan, an increase of 1812.96% over the same period last year.

In terms of production capacity, Shengtun Mining distributes nickel, copper and cobalt upstream resources in the world's most important nickel, copper and cobalt mineral resource countries, including the Democratic Republic of the Congo, Indonesia, Zambia and other countries. It already has a production capacity of 40, 000 tons of copper, 8000 tons of cobalt and 40, 000 tons of nickel. The nickel-cobalt-copper project is in the best full production state in history, and the raw material supply guarantee capacity is strong. With the company's projects under construction being completed and put into production in the future, the company will form an annual production capacity of 120000 tons of copper, 45000 tons of nickel, 16000 tons of cobalt and 300000 tons of zinc in the next three years.