The energy consumption "double control" of the 10,000-ton battery-grade lithium carbonate project in Tibet mining industry will not affect the existing production capacity and new projects.

On the evening of September 26th, Mount Qomolangma, Tibet (600338) announced that it is proposed to raise no more than 8 billion yuan. It will be used for the lithium extraction construction project of 50, 000 tons of lithium carbonate lake of Argentina Lithium potassium Co., Ltd., the mining / annual transformation and expansion project of 6 million tons of mines of Tazhong Mining Co., Ltd., the lithium salt lake resources exploration project of Argentina Tosa Co., Ltd. And supplementary working capital.

Zhang Jintao, general manager of the company, said at the meeting that the project strives to be controllable in terms of technical and financial risks. Partner Donghua Technology (002140.SZ) has the comprehensive Class A qualification of national engineering design, has done salt lake lithium extraction projects such as Zang GE Holdings, has relevant experience and technology, and has signed a performance guarantee, and the operation project has also agreed on the assessment index of capacity utilization (50% in the first year, 90% in the second year, and 100% in the third year), and has a performance guarantee of up to 800 million yuan. At the same time, Baowu of China has relevant professional support, and governments at all levels in Tibet Autonomous region have also strongly supported the project and formed a special leading promotion group. I believe that the project can be implemented smoothly.

Agreed assessment and rewards and punishments to ensure the smooth implementation of the project

On the evening of September 24th, Tibet Mining announced that its holding subsidiary, Tibet Xigaze Zabuye Lithium Industry Hi-Tech Co., Ltd. signed a 10,000-ton battery-grade lithium carbonate project (EPC+O contract) for the green comprehensive development and utilization of Zabuye Salt Lake in Tibet, announcing new progress in its second phase of the salt lake lithium extraction project. According to the announcement, the first winning candidate for the project is Donghua Technology, and the bid price is 2.873 billion yuan (excluding tax), of which the total contract fee for the EPC project is 1.918 billion yuan and the operating fee is 956 million yuan. The scale of the project is 9600 tons of battery-grade lithium carbonate, 2400 tons of industrial-grade lithium carbonate and 156000 tons of potassium chloride. The construction plan has a construction period of 669 calendar days and an operation period of three years.

In view of the content of the contract, Zhang Ke, head of the company's planning department, further explained that the 669-day construction period was determined according to the construction time available in Zabuye area, where there was permafrost from November to April of the following year, and the temperature could be as low as minus 20 °. The actual time available for construction was less than one year, and the company would try its best to speed up the progress in the implementation process. It also mentioned that the project has a high degree of automation, with a current manpower of 60, mainly employees with bachelor's degree or above. Membrane suppliers have been contacted, follow-up Donghua Technology will be clear bidding.

It should be noted that institutional investors pay close attention to the assessment indicators and reward and punishment measures agreed by both parties. According to Zhang Jinke, Tibet Mining has set an examination period for three years, with production assessment quotas of 50%, 90% and 100% respectively in the first three years. If the output cannot be reached, Donghua Technology will compensate the company with cash at the same price and products of the same quality according to the feasible research price. If the output is still less than 95% after the end of the second three years of operation, the company can initiate retroactive liability of 800 million yuan for breach of contract. In terms of production incentives, the assumption of the feasibility of the project is 12000 tons. If the output exceeds the planned output, the overproduction will be shared in a proportion with Donghua Technology. For example, if the required production capacity is 12000 tons of lithium carbonate and 156000 tons of potassium chloride, assuming that 14000 tons of lithium carbonate is achieved this year, then there is a share between the 2000 tons of overproduced companies and East China Science and Technology. This ratio is still calculated at the price of 45000 yuan per ton, and then set a file every 20, 000 times, the first file East China Science and Technology takes 50%, the company takes 50%; When the price difference reaches 60,000, the company takes 80% and East China Science and Technology takes 20%. In terms of cost, after 1.9 billion of the investment in Tibet Mining, the annual operating expenses are covered by the total price. If the cost exceeds the research limit of 24000 yuan / ton, it will be borne by Donghua Science and Technology; and if Donghua Technology can achieve a cost of less than 22000 yuan / ton, it will take away the remaining operating expenses (2.4-22000 yuan / ton).

The "double control" of energy consumption does not affect the existing production capacity and the landing of new projects.

For the project operator after the first three-year operation period, Zhang Jintao replied to investors, "in order to train the company's own talents, the company will send people to work with Donghua Technology in the first three years of operation. Our goal is to train talents to operate independently. But at that time, it still depends on whether the trained people can operate the device independently, and then combined with cost estimation, determine the later operation plan. "

In addition, with regard to the technical route and timetable of the next three phases of the project, Zhang Jintao said that at present, the company is carrying out the demonstration of a variety of technical routes, including adsorption, extraction, and so on, and the third phase of the process needs to be verified by semi-industrial production tests (pilot test). After the pilot test is successful, we will step up efforts to start the feasibility demonstration of the project, and if the project technology, ecological and environmental protection, and economy are feasible, we will immediately start the construction of the third phase of the project.

"this year has entered the salt collection period, until mid-October, the current situation, there is confidence to reach 7000 tons of lithium concentrate production, this year's production will be retained for sale next year." In addition to the latest development of the project, investors are also very concerned about the company's output and sales this year. Zhang Jintao replied that at present, the company's customers are mainly enterprises that make cathode materials, and at present, due to limited production capacity, supply falls short of demand. Focus on training 1-2 strategic customers. As far as customer feedback is concerned, the quality of the company's lithium concentrate is very good, and the company's sales are normal.

It is worth mentioning that recently, the "double control" of energy consumption across the country has become stricter, and many investors have expressed concern about the operating rate of the company's existing capacity and the promotion of new projects. In this regard, the company's secretary and financial director Xu Shaobing said that the company's existing production capacity of the process is sun salt, basically no electricity, so there is no impact on the existing production. The second phase of the project is planned from the very beginning to consider the use of BOO mode to build "photovoltaic + photothermal mode" to solve the power consumption problem, this design is very forward-looking, is completely using clean energy to produce lithium carbonate, if the later stage with the further strengthening of the domestic double control policy, the process should have stronger market competitiveness.

It also mentioned that the power supply project has been launched by Synchronize, and contacts have been made with several major domestic energy comprehensive utilization enterprises and related enterprises in the Tibet Autonomous region, and the BOO model is being invited for tender, and Synchronize will be built with the project to ensure matching with the project.