China Minmetals, a central government-backed enterprise, is set to take control of a provincial lithium company, aiming to accelerate the development of a “world-class” lithium extraction industry from salt lakes in western China, it said. Bloomberg News.
This includes the formation of a new joint venture, China Salt Lake Group. It will be majority owned by China Minmetals with a 53% stake and will acquire Qinghai Salt Lake Industry.
Qinghai Province, home to numerous lithium-rich salt lakes, is expected to become a major center for lithium production.
The establishment of China Salt Lake Group, with a registered capital of 10 billion yuan ($1.4 billion), marks a strategic move by the central government to gain greater influence in the domestic lithium sector.
Qinghai Salt Lake was quoted by the news agency as saying that the acquisition by Minmetals will “accelerate the construction of a world-class salt lake industry base.” The company will move from provincial to central government control.
The remaining shares of China Salt Lake Group are held by two entities affiliated with the Qinghai provincial government.
Last month, China’s Ministry of Commerce said it enforce export controls about antimony and related products.
The measure will take effect on September 15, 2024, and is intended to “protect national security and interests and comply with international obligations such as non-proliferation,” a ministry spokesperson said.
Reuters reported that China imposed restrictions on antimony products such as ore, bars and oxides, requiring exporters to obtain licenses for dual-use items and technologies with military and civilian applications.
“China forms new 10 billion yuan lithium enterprise” was originally created and published by Mining technologya brand of GlobalData.
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