Sichuan Huati Lighting Technology plans to invest US$3 million in Mozambique's lithium mine - Kyushu Resources
Source: Company announcement
December 27, 2023
China's Sichuan Huati Lighting Technology intends to invest US$3,000,000 through its subsidiary, Huati International Energy (Hainan) Co., Ltd. (hereinafter referred to as "Huati International Energy"), to subscribe to the increased registered capital of 570,000.00MT (Mozambican Metical, the legal currency of Mozambique) in KYUSHU RESOURCES, SA, a company established under the laws of the Republic of Mozambique (hereinafter referred to as "Kyushu Resources Company"). Upon completion of the capital increase, the registered capital of Kyushu Resources Company will change to 670,000.00MT, with Huati International Energy holding an 85% stake.
Kyushu Resources Company, a wholly foreign-owned company registered in Mozambique, is responsible for the lithium mining projects within the country and owns 100% of the rights to the Mozambique 11682 lithium mine project. According to the feasibility study report by Jingxiu Engineering Consulting Co., Ltd. for the Mozambique 11682 project, the mine area contains 25 giant crystal rock veins, with an estimated 5.2 million tons of 333 Li20 ore, averaging a Li20 grade of 0.76%; and 1.2 million tons of 334 Li20 prospective ore, averaging a Li20 grade of 0.91%. The combined 333+334 ore resource is estimated at 6.4 million tons. The resources of Ta205 and Nb205 have not been estimated as their analysis results are not yet available.
"Under the JORC Code, China's mineral resources 333 and 334 could potentially fall into the category of "Inferred Resources." This essentially means they have some initial promise, but their true extent and value remain uncertain. Further exploration is crucial to confirm their accuracy and assess their economic viability. It can be approximately interpreted as having estimated inferred resources of around 125,000 metric tonnes of lithium carbonate equivalent"
Sichuan Huati Lighting Technology Co., Ltd. is a China national high-tech enterprise specializing in the construction of new smart cities and cultural lighting. It is the first company in the field of road lighting in China listed on the main board of the stock exchange. In recent years, the company has actively expanded its core business scope and enriched its product system. In March 2023, the company established Sichuan Huati Green Energy Technology Co., Ltd. (hereinafter referred to as "Huati Green Energy"), and in July 2023, Sichuan Huati Lithium Energy Resources Co., Ltd. (hereinafter referred to as "Huati Lithium Energy") was established. Huati Green Energy primarily engages in lithium battery sales and related businesses, while Huati Lithium Energy focuses on lithium ore sales.
The company's investments in Huati Green Energy and Huati Lithium Energy are geared towards actively participating in the development of the new energy industry. This initiative is designed to create a complete industrial chain for new energy batteries and foster a more conducive environment for the growth of new products.