BEIJING, Sept 9 (Askume) – State-owned China Minmetals Corp (CHMIN.UL) plans to set up a 10 billion yuan ($10 billion) mining company in northwestern China’s lithium-rich Qinghai province with local companies, a statement and exchange filings showed. ($1.41 billion) miners showed.
The joint venture, provisionally named China Salt Lake Industrial Group, will build a “world-class” production centre to enhance the security of national potassium and lithium resources, Minmetals said in a statement.
Major uses of lithium include electric vehicle batteries and solar panels. Potassium is also used in batteries.
Qinghai Salt Lake Industry (000792.SZ) said in a document filed with the Shenzhen Stock Exchange that the new company will acquire 12.54% of the shares of Qinghai Salt Lake Industry (000792.SZ) and become the controlling shareholder.
Qinghai Salt Lake Industries, currently owned by local authorities, controls China’s largest potassium and lithium resources.
Stock exchange documents show Minmetals plans to invest 5.3 billion yuan in China Salt Lake Industry, whose main business will include mining, exploration and production of lithium chemicals and other battery materials.
The document shows that it will invest with the Qinghai Provincial State-owned Assets Investment Management Company and the Qinghai Provincial Assets Supervision and Administration Commission.
(1 USD = 7.1069 RMB)
