Jiangxi special electric motor faces lithium mine cancellation threat

Jiangxi Special Electric Motor Co., Ltd. announced that its Shiziling mining area's lithium-bearing porcelain stone mine is among 27 mining rights proposed for cancellation by the Yichun City Natural Resources Bureau. The company obtained this mining permit in 2014, renewed in 2019, and operates with an annual production capacity of 1.2 million tons. The primary issue stems from the exhaustion of recoverable open-pit reserves within the original permit boundaries and restrictions due to the narrow scope of the mining permit for remaining resources.

According to a resource verification report, the Shiziling mine still holds 16,413.53 thousand tons of lithium-bearing porcelain stone and 62,393 tons of associated Li2O, with an average Li2O grade of 0.38%. The company has submitted an objection to the proposed cancellation and is actively seeking solutions to extend the mining permit.

Concurrently, Jiangxi Special Electric Motor is expediting preparations for its Fenghong lithium mine, characterized by high grade, large reserves, and favorable extraction conditions. This new mine, with a 30-year operational lifespan, is expected to significantly boost the company's lithium self-sufficiency, reduce production costs, and enhance profitability for its lithium industry over the next three decades.