September 30 marked the final deadline for 8 Yichun lithium-related mining companies to compile their reserves verification reports. Whether this involves ore type changes and potential mine shutdowns has drawn significant attention from the lithium battery industry and capital markets.
"As of now, the company has not received any shutdown notice. Based on current circumstances, the possibility of shutdown appears unlikely," a Yichun lithium company stated on September 30 afternoon.
The controversy surrounding these 8 Yichun lithium companies began over two months ago. According to obtained materials, in July, Yichun Natural Resources Bureau issued a notice regarding reserves verification report compilation. Eight lithium-related mining rights, including the Zhenkouoli-Jianxiawo ceramic clay (lithium-bearing) mine in Yifeng County and Fengxin County, the Gesili mining area Shuinan section ceramic clay (lithium-bearing) mine in Yifeng County, and the Jinzifeng-Zuojiali mining area ceramic clay (lithium-bearing) mine in Fengxin County and Yifeng County, were found to have circumvented higher-level approval authorities and exceeded authorization in handling transfer, modification, or renewal registration procedures.
The notice stated that to implement audit rectification requirements, further standardize mineral resource transfer and registration approval procedures, and protect state asset rights, the above mining companies must compile ore type change reserves verification reports according to requirements and scientifically determine primary mining ore types. The 8 mining companies immediately initiated report compilation work after the notice was issued and completed the reports by September 30, submitting them to Yichun Natural Resources Bureau.
The 8 mines involve the following companies: Yichun Contemporary New Energy Mining Co., Ltd., Yichun Gotion Mining Co., Ltd., Yichun Shengyuan Lithium Industry Co., Ltd., Yifeng County Huaqiao Mining Co., Ltd., Yifeng County Huali Mining Development Co., Ltd., Jiangxi Dingxing Mining Co., Ltd., Jiangxi Chunyou Lithium Industry Co., Ltd., and Yifeng County Donglian Mineral Products Development Co., Ltd.
The aforementioned Yichun lithium company told reporters, "Our reserves verification reports were prepared according to notice requirements. After submission, the government will organize expert teams for review, and conclusions will be reached after review completion. We are currently awaiting further notice."
Beyond mine shutdown concerns, the question of ore type changes directly impacts lithium extraction costs from lepidolite. Regarding this, the Yichun lithium company stated, "The submitted reserves verification report was compiled based on 0.2% lithium oxide grade and does not involve ore type changes."
Yichun region possesses Asia's largest lepidolite reserves and is known as the "Asian Lithium Capital." Despite abundant lithium resources, these are associated minerals with generally low lithium content.
Industry insiders explained, "According to previous regulations including the Mineral Resource Mining Registration Management Measures, lithium oxide grades must reach 0.4% or above to obtain lithium mining permits. Yichun's lithium-bearing ceramic clay mines generally have lithium oxide grades below 0.4%. However, with improved lithium extraction technology and rising lithium prices, Yichun's lithium-bearing ceramic clay mines have gained mining value. Therefore, except for individual enterprises, current lithium-related mining permits in Yichun region are classified as ceramic clay mines (lithium-bearing)."
Yichun previously issued "Opinions on Strengthening Lithium Resource Mining Rights Approval and Filing Work," requiring that mineral resources with lithium oxide grades above 0.4% (including 0.4%) and meeting industrial selectability requirements temporarily not be granted mining rights, with such areas included in lithium resource planning reserve zones. For existing mining rights with lithium oxide reaching selectable grades, resource integration and comprehensive mineral processing recovery should be promoted to achieve intensive mining and comprehensive utilization. For areas where lithium oxide grades are verified below 0.4%, or above 0.4% but proven difficult to extract through mineral processing tests, new mining rights establishment, boundary expansion, and existing mining rights renewal registration should follow normal legal procedures.
However, the lithium company noted, "This reserves verification report compilation does not involve ore type changes, but this doesn't mean subsequent ore type changes won't be needed. Converting lithium-bearing ceramic clay mines to lithium mines should be an inevitable trend. This reserves verification report is likely preparation for subsequent ore type changes."
Additionally, among the 8 lithium-related mines, the Zhenkouoli-Jianxiawo ceramic clay (lithium-bearing) mine in Yifeng County and Fengxin County officially ceased production after its mining permit expired on August 9. However, after one month of shutdown, on September 9, Yichun Contemporary New Energy Resources Co., Ltd., a subsidiary of Contemporary Amperex Technology, held a "Yichun Contemporary Jianxiawo Lithium Mine Production Resumption Meeting" to resume production as soon as possible.