The self-supply rate of lithium concentrate has become one of the important indicators of lithium salt companies, and 002497.SZ Group, through the acquisition of 60% stake in the wholly-owned subsidiary of Ultra-Lithium Company (hereinafter referred to as "the joint venture company"), "is not only to meet the expansion needs of 50, 000 tons of lithium salt in the future Ya'an Phase III, but also the first step for the company to take independent control of lithium ore." The person in charge of Ya Hua Group told the Financial Associated Press. According to the reporter's understanding, the preliminary lithium carbonate equivalent of the joint venture's two lithium mine projects is about 500000 tons, and the first phase of lithium concentrate production capacity is expected to be completed in 2024.
On the afternoon of April 17, Yahua Group disclosed that the company's wholly-owned subsidiary, Yahua International, intends to contribute C $5 million to subscribe for 21.2766 million units of Canada's Super Lithium Company (Ultra Lithium Inc.), accounting for about 13.23% of the company's current total share capital. At the same time, Yahhua International acquired 60% of the wholly-owned subsidiary of Ultra Lithium Company in cash and controlled its Fogan Lake hard Rock spodumene lithium mine project and Georgia Lake hard Rock spodumene lithium mine project.
Obviously, the capital market is more concerned about the joint venture in which Yahhua takes control than subscribing for shares in the ultra-lithium company. According to the announcement, the Fogan Lake project estimated 6.4 million tons of resources based on the surface outcrop area, the average grade of lithium oxide was 2.2%, and the preliminary estimated lithium oxide equivalent was about 140000 tons; the Georgia Lake project mine estimated resources based on the surface outcrop area of 5.4 million tons, the average grade of lithium oxide 1.2%, and the preliminary estimate of lithium oxide equivalent of about 65000 tons.
According to the reporter's simple calculation, the total lithium oxide equivalent of the above two lithium mining projects is about 205000 tons. If the conversion coefficient of lithium oxide equivalent and lithium carbonate equivalent LCE is 1VR 2.47, the equivalent of lithium carbonate is about 500000 tons. In addition, according to the analysis of a brokerage, Yahua Group will have 13.23% equity at the listed company level of Ultra Lithium Company and 60% interest at the project level of the joint venture company. Ya Hua Group will have a total interest of 65.29% in Fugen Lake and Georgia Lithium Mine projects, corresponding to about 330000 tons of LCE.
Yahua further said in the announcement that according to the preliminary results, the first phase will design and build a lithium concentrate plant of 200000 tons / year lithium oxide, and then expand the capacity of the second phase to 400000 tons (reporter's note: about 50, 000 tons of lithium carbonate equivalent). A reporter from the Financial Associated Press learned from the relevant person in charge of Yahua Group that the first phase of lithium concentrate production capacity is expected to be completed in 2024.
In addition, UltraLithium owns lithium brine mines in Argentina, as well as copper and gold mining and exploration rights in several regions of Argentina. Among them, the Laguna Salt Lake project in the Argentine province of Catamarca consists of three mining licenses, with mining rights covering an area of 117square kilometers and a lithium ion grade of up to 1270mg/L. According to the above-mentioned brokerage analysis, Argentina's Laguna Verde Salt Lake (13.23% of Yahhua Group's interest) is in the exploration phase, and the exploration work is expected to be completed in the second quarter of this year.
On this basis, Yahhua Group pointed out in the announcement that Super Lithium will continue to seek acquisition opportunities for high-quality hard rock lithium resources for joint ventures, such as lithium oxide (Li2O) pegmatite resources with an average grade of 1.0-1.2% or higher, and will continue to explore, discover and acquire more Canadian lithium resources specifically for the joint venture company.
Before the independent control of lithium ore resources was put into production, according to the research activity table disclosed by Yahua Group a few days ago, the current lithium concentrate underwriting agreement has been able to meet the company's lithium salt production needs in 2022, including the existing 43000 tons of comprehensive lithium salt production capacity and the 30, 000 tons of battery-grade lithium hydroxide production capacity expected to be completed and put into production by the end of this year.