Sheng Xin LiNeng US $76.5 million acquisition of overseas Lithium Mine Project Lithium Salt supply is further guaranteed

SMM, Nov. 3: Shengxin LiNeng announced that its subsidiary, Shengyi International, plans to buy a 51% stake in MaxMind Hong Kong for US $76.5 million. The MaxMind Hong Kong subsidiary has mining warrants for a total of 40 rare metal blocks located in the Sabixing Lithium-Tantalum Mine in Zimbabwe, with a total area of 2637 hectares.

At present, Shengxin LiNeng has carried out resource exploration in five mining right blocks (covering an area of 116ha). A total of 6.683 million tons of ore resources have been identified in the mining area, including 1.231 million tons of proven resources, 2.534 million tons of controlled resources and 2.918 million tons of inferred resources.

It is reported that the main mineral products within the scope of the above mining rights are spodumene, which is mainly used in the production of products such as lithium hydroxide and lithium carbonate. The company believes that the lithium ore resources in the above mining areas have the potential for further growth, which is also conducive to further ensuring the supply of raw materials for Shengxin lithium energy lithium salt business.

It is worth mentioning that the spot price of spodumene concentrate (6% CIF) has skyrocketed since the fourth quarter of 2020, according to SMM historical prices. As of Nov. 3, the spot price of spodumene concentrate (6% heroin CIF) averaged US $1415 per tonne, up US $997.5 per tonne, or 238.92 per cent, from the beginning of the year.

"Click to view the historical price of SMM

After Pilbara, a well-known overseas lithium mining company, auctioned spodumene concentrate at historically high prices three times, it is sufficient to prove that the market is still optimistic about the future lithium price. On this basis, the price of spodumene concentrate, which is already in short supply, has risen again.

Due to the shortage of lithium ore and the soaring price of lithium salt since the third quarter, enterprises in all major links of the lithium industry chain began to scramble to distribute lithium resources upstream. Prior to this, Ganfeng Lithium Industry was robbed by Tigers in the battle for lithium mines in the Ningde era, and on November 1, it was reported that when Ningde era overseas acquired Canadian Millennium Lithium Industry, the price was raised by the American Lithium Industry, and the battle for lithium mines heated up again.

Under this background, if we can seize a place in the increasingly fierce competition for lithium ore, the supply of battery raw materials for Shengxin lithium energy will be guaranteed to a certain extent.

Shengxin Lithium Energy's net profit soared 965.21% in the first three quarters compared with the same period last year. Actively layout the business of lithium salt expansion and lithium mining and separation.