[SMM Analysis]Dazhong Mining Accelerates the Formation of an 'Iron Ore + Lithium Ore' Dual-Driven Strategy

On May 18, 2025, the transportation tunnel of the Jijiaoshan Lithium Mine in Linwu County, operated by Hunan Dazhonghe Lithium Mine Co., Ltd. (a wholly-owned subsidiary of Dazhong Mining Co., Ltd.), was completed and operational 113 days ahead of schedule. This project marked the first application of shield machine technology in domestic mine construction, setting industry records with daily excavation of 55 meters and monthly maximum excavation of 1,101 meters. The tunnel was completed in just 13 months, achieving engineering work that would have taken five years under traditional methods. Once operational, the tunnel will enable seamless integration between open-pit mining and beneficiation plants, increasing ore transportation efficiency by over fivefold. It is also expected to reduce annual fuel consumption by 20,000 tons and carbon emissions by 50,000 tons.

As a leading domestic iron ore mining enterprise, Dazhong Mining ventured into the lithium mining industry in 2022, acquiring exploration rights for the Jijiaoshan Lithium Mine in Hunan and the Jiada Lithium Mine in Sichuan. The Hunan lithium mine project has advanced rapidly, with verified lithium carbonate equivalent (LCE) reserves of 3.2443 million tons as of December 2024, ranking among the top in China. The tunnel's completion signifies a significant breakthrough in the company’s "iron ore + lithium ore" dual-driven strategy. Going forward, Dazhong Mining will continue to advance lithium mine project development and expand its portfolio of high-quality mineral resources both domestically and internationally.