From 684 million to 177 million: Tibet Mineral Development's lithium company still up for sale

On the evening of June 2, Tibet Mineral Development Co., Ltd. (000762) announced that it planned to reduce the public listing price for the 100% equity of its holding subsidiary, Baiyin Zhabuye Lithium Industry Co., Ltd. (hereinafter referred to as "Baiyin Zhabuye"), by 10% from the original price.

Looking back, in October 2024, Tibet Mineral Development Co., Ltd. announced that it would transfer the 100% equity of its holding subsidiary, Baiyin Zhabuye, through public listing. The initial listing price was based on the assessed value of 196.5793 million yuan after record-filing approval, and the initial listing announcement period commenced on December 17, 2024.

As no qualified prospective transferees were identified during the initial public listing period, in accordance with relevant regulations, Tibet Mineral Development Co., Ltd. convened the third extraordinary meeting of the eighth board of directors on May 30, 2025, and agreed to reduce the price of Baiyin Zhabuye's 100% equity by 10% from the initial 2024 listing price. The transfer reserve price was adjusted to 176.92137 million yuan, and Shanghai United Assets and Equity Exchange was entrusted to conduct the second round of public listing and transfer.

According to available information, Baiyin Zhabuye was registered and established in August 2004. It is located in Baiyin City, Gansu Province, a non-ferrous metal production site in China, specifically within the Baiyin High-Tech Industrial Park of the Chinese Academy of Sciences. It covers an area of 164 mu, with a registered capital of 320 million yuan. Its business scope includes the production of lithium hydroxide (operating with a work safety license) and the production and processing of lithium, boron, potassium, sodium, bromine (none of the above products contain hazardous chemicals) series products.

According to the "Approval on the Suspension of Production of Baiyin Zhabuye Lithium Industry Co., Ltd." (Zang Kuang Fa Gu Zi [2019] No. 69), Tibet Mineral Development Co., Ltd. agreed to Baiyin Zhabuye's application for suspension of production due to factors such as the continuous downturn in the lithium chemicals market, severe backlog of inventory products, and historical environmental protection issues. It also required Baiyin Zhabuye to address environmental protection issues during the suspension period and actively expand the lithium chemicals market.

Subsequently, due to the outdated lime causticisation process, aging equipment, prominent issues with waste emissions and wastewater discharge at Baiyin Zhabuye, which did not align with the industrial layout of the strategic development plans of China Baowu Steel Group Corporation Limited and Tibet Mineral Development Co., Ltd., and its high energy consumption did not meet the requirements of the "dual carbon" goals; after an overall assessment by Tibet Mineral Development Co., Ltd. in 2020, Baiyin Zhabuye was classified as a "legal entity reduction unit" and officially suspended production in April 2020. As of the base date of the assessment, Baiyin Zhabuye had ceased normal business operations.

It is worth noting that this is not the first time Baiyin Zhabuye's listing price has been reduced. Tibet Mineral Development Co., Ltd. began publicly listing and transferring 100% of Baiyin Zhabuye's equity as early as December 2022, with an initial listing price of 684 million yuan. However, as no qualified prospective transferees were identified for this project, it was automatically delisted from the official website of Shanghai United Assets and Equity Exchange one year after listing.

The annual report showed that Tibet Mining's revenue and net profit both declined in 2024. The company aims to optimize its industrial layout and resource allocation, improve its asset structure, and reduce management and investment risks by transferring its equity in Silver Zabuye.

Currently, the lithium industry remains sluggish, with lithium carbonate prices falling below the 60,000 yuan/mt threshold. Market sentiment remains cautious, and the transfer of Silver Zabuye still faces challenges.