Home / Metal News / Zangge Mining: Mamicuo Mining obtains construction permit for lithium and boron mining project in salt lake mining area

Zangge Mining: Mamicuo Mining obtains construction permit for lithium and boron mining project in salt lake mining area

iconJul 4, 2025 17:14
Source:SMM
Zangge Mining recently announced that Tibet Ali Mamicuo Mining Development Co., Ltd., invested in and controlled by Jiangsu Zangqing New Energy Industry Development Fund Partnership (Limited Partnership), in which Zangge Mining Investment (Chengdu) Co., Ltd., a wholly-owned subsidiary of Zangge Mining, participated in the subscription, had received the "Construction Engineering Permit" issued by the Gerze County Housing and Urban-Rural Development Bureau. According to the announcement, the permit is for the construction of the "Mamicuo Salt Lake Mining Area Lithium-Boron Mining Project," which is conducive to expanding the company's capacity scale for lithium extraction from salt lakes, enhancing the company's core competitiveness and industry influence, aligning with the company's development strategy and the interests of all shareholders, and creating new profit growth points for the company.

SMM News on July 4: Zangge Mining recently announced that Tibet Ali Mamicuo Mining Development Co., Ltd., invested and controlled by Jiangsu Zangqing New Energy Industry Development Fund Partnership (Limited Partnership), in which Zangge Mining Investment (Chengdu) Co., Ltd., a wholly-owned subsidiary of the company, participated in the subscription, has received the "Construction Engineering Construction Permit" issued by the Housing and Urban-Rural Development Bureau of Gerze County. According to the announcement, the permit is for the construction of the "Lithium and Boron Mining Project in the Mamicuo Salt Lake Mining Area," which is conducive to expanding the company's production capacity scale of lithium extraction from salt lakes, enhancing the company's core competitiveness and industry influence, aligning with the company's development strategy and the interests of all shareholders, and creating new profit growth points for the company.

However, the company also reminds that the Mamicuo Salt Lake is located in Gerze County, Ngari Prefecture, Tibet, at a high altitude with a harsh natural environment and inadequate infrastructure, which may pose risks of the project construction not meeting expectations. Investors are advised to invest rationally and pay attention to investment risks.

Regarding the impact of low-temperature environments on the company's salt lake project, Zangge Mining stated that the actual altitude of the Mamicuo Salt Lake is over 4,300 meters, with an average annual temperature in Gerze County ranging from -6℃ to 8℃, a maximum annual temperature of 27℃, and a minimum annual temperature of -40℃. Among them, January and February are the coldest months of the year, with brine temperatures below 0℃, leading to a simultaneous decline in the efficiency of membranes and adsorbents due to the temperature drop. The project team has fully considered this factor during the capacity design phase, planning to suspend production for maintenance in January and increase capacity after the summer temperatures rebound. If winter production can be normalized through future process technology optimization, the production of the first-phase project is expected to exceed the original designed capacity and achieve overproduction targets.

It is worth mentioning that on June 25, the company also released an investor activity record sheet regarding the Mamicuo project, in which it was asked about the topic of "whether the harsh winter climate in Tibet and low temperatures would affect the project construction cycle." Zangge Mining stated that the company plans to commence the construction of the first-phase project in the third quarter of this year and simultaneously carry out equipment procurement and the mobilization of construction teams. Currently, the preliminary preparations for project construction have been completed, including the construction of over 20 kilometers of roads and site leveling in the mining area. According to the plan, civil engineering works will be completed by mid-October 2025, and equipment will be delivered to the site, followed by the promotion of indoor equipment installation during the cold winter period. Based on preliminary estimates, the project construction cycle is expected to be 9-12 months, with the specific progress to be dynamically adjusted based on the actual implementation situation. The company will spare no effort to ensure the efficient advancement of project construction.

Compared to the technological route of the Qarhan salt lake, the Mamitsuo salt lake project incorporates a brine modification step, building on the mature processes of the Qarhan salt lake, to address the issue of aluminum-based adsorbents' incompatibility with the brine from Tibetan salt lakes, while also resolving the freshwater source required for the process. Additionally, it is the first to adopt continuous bed dual-series adsorption in the adsorption process, significantly reducing the amount of adsorbent used. Membrane technology is employed to recover carbonate ions, reducing the consumption of sodium carbonate raw material, and bipolar membrane technology is used to address the self-use of acids and bases. In particular, the company will extensively apply intelligent control systems in the Mamitsuo project to achieve unmanned operation and remote control, thereby reducing labor costs.

Regarding the target recovery rate of lithium resources, Zangge Mining stated that after comprehensive evaluation by the team, the primary recovery rate target for the Mamitsuo project is set at no less than 95%. This parameter ensures efficient extraction of lithium resources while also achieving reasonable control over the amount of adsorbent used, balancing production efficiency and cost optimization.

When mentioning the development of by-products from the Mamitsuo salt lake,Zangge Mining indicated that the development of by-products from the Mamitsuo salt lake mainly focuses on the recovery and utilization of boron. The first phase plans to construct a 50,000 mt lithium carbonate production capacity and a 17,000 mt boron by-product production capacity. After the company's first-phase project is completed and reaches full production standards, a second-phase project with a scale of 50,000-100,000 mt will be initiated, provided that the power supply is deemed reliable, and the second-phase project only requires government approval.

Regarding the future supply situation of Tibetan salt lakes, Zangge Mining stated that,the long-term planned production capacity of the Mamitsuo salt lake is 100,000 mt, and the long-term planned lithium chemicals production capacity of two salt lake resources under Guoneng is 130,000 mt. Combining with salt lakes such as Zabuye, Damxung Tso, and Lakkor Tso, the total future supply of lithium chemicals from Tibetan salt lakes is estimated to be in the range of 300,000-400,000 mt.Among them, Zangge Mining stated that the development process, investment progress, and development arrangements of the two salt lake projects under Guoneng Mining are still subject to negotiation, and whether Zangge Mining will participate in the production and operation in the later stage needs to be determined based on the progress of subsequent negotiations.

Previously, Zangge Mining also responded to the planning situation of the Jieze Chaka and Longmu Tso salt lakes under Guoneng Mining for 2025, stating that in 2025, Guoneng Mining will, on the one hand, accelerate the construction of the production line for the 10,000 mt lithium hydroxide production line entrusted for processing and various supporting facilities, forming a production capacity of 10,000 mt and producing products within the year, while also determining the construction arrangements for the remaining 20,000 mt lithium hydroxide production line; on the other hand, it will accelerate the implementation of the self-built line projects for the Jieze Chaka and Longmu Tso salt lakes, and synchronously implement the power distribution unit to follow up on the corresponding power supporting facilities.

According to historical price data from SMM, since entering 2025, due to the overall loose supply situation in the lithium carbonate market, the price of lithium carbonate has generally fluctuated downward. On June 24, the average spot price of battery-grade lithium carbonate even fell to a low of 59,900 yuan/mt. As the price reached a new low for the year, marginal changes occurred in the market at the end of June. Stimulated by news of improved demand expectations in July, the spot price of lithium carbonate showed signs of stopping falling and stabilizing, with a slight rebound. Coupled with the support of some rigid demand orders for the price increase, the price center of the spot market has risen somewhat. However, on the whole, the transaction price of spot lithium carbonate continued its downward trend in June.

According to SMM's spot quotes, since entering July, the spot quotes of battery-grade lithium carbonate have fluctuated upward. As of July 4, the spot quotes of battery-grade lithium carbonate have risen to 61,300-63,300 yuan/mt, with an average price of 62,300 yuan/mt, up 2,400 yuan/mt from the low point of 59,900 yuan/mt on June 24, representing an increase of approximately 4%.

》Click to view SMM's spot quotes for new energy products

SMM believes that the recent rise in lithium carbonate prices is mainly driven by the expected improvement in demand in July and supported by some rigid procurement orders, coupled with the irrational impact of unverified rumors circulating in the market. The overall market remains in a state of "upstream refusing to budge on prices, downstream driving down prices."

On the supply side, there is an ample supply of lithium carbonate in the market, and the industry's inventory pressure has not been effectively alleviated, with smelters maintaining high quotes. However, downstream cathode material plants' procurement is still mainly based on rigid demand, and their willingness to build up inventory has not significantly increased, resulting in sluggish overall market transactions. Although there is an expectation of increased production schedules in July on the demand side, the actual recovery situation still needs to be observed, and wait-and-see sentiment remains strong. If the production schedules of cathode material plants increase as expected in July, it may further support prices; otherwise, inventory pressure may once again suppress the upside room for prices. Overall, the lithium carbonate market is still in a state of supply surplus, and it may maintain a fluctuating trend in the short term. The actual recovery situation on the demand side still needs to be closely monitored.

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

SMM Events & Webinars

All