News Room - Business/Economics

Posted on 04 Dec 2024

Chinese Youngy to expand capacity at Jiajika spodumene mine

Shenzhen-listed Chinese manufacturer Youngy announced an expansion plan at the Jiajika spodumene mine in Ganzi prefecture, China’s Sichuan province, Kallanish Power Materials learns.

It said its wholly-owned subsidiary Rongda Lithium (Ganzi) signed a raw ore transportation cooperation agreement with the local government of Kangding City, Ganzi Province on mineral processing outsourcing. 

According to the agreement which is valid for two years, Roungy will contruct a mineral processing capacity expansion project at the original mine site. The scale of the expansion is to add 350,000 tonnes/year of mineral processing capacity.

Rongda Lithium is allowed to outsource the beneficiation of raw ores mined from the site, and the amount of raw ore shipped out each year shall not exceed the amount agreed in the agreement. Kallanish is still waiting for the company's response on the agreed outsourcing amount. 

Further extension of the agreement is likely to occur of the two parties have no disagreements on the terms. 

"The signing of this agreement is in line with the company's lithium industry's strategic development goals, which is conducive to further expanding mine output and improving mine economic benefits, Youngy comments. "it helps to achieve the effective matching of the company's production capacity and resources, enhance the synergy of upstream and downstream of the industrial chain, and further improve the profitability of the company's main business."

The mine this deal is involved is the Jiajika134 mine. Youngy has the entire mining rights. The average grade of its lithium ore is about 1.42%, which is equivalent to about 1 million t of lithium carbonate reserves. The company currently has an ore mining capacity of 1.05m t/y and an ore processing and beneficiation capacity of 450,000 t/y. When the current production capacity is fully utilised, the lithium concentrate output is approximately 70,000-80,000 t/y.

Source:Kallanish Power Materials