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Eye on Lithium: Half a Chinese lithium mine just sold for US$300 million at auction

The global rush for to secure lithium supplies just ramped up, with an auction for a controlling stake in a Chinese lithium mine scoring 3,448 bids over the weekend.

The 54.3% stake in Yajiang Snowway Mining Development, which owns the mine in Sichuan, a southwestern province in China, sold for about 2 billion yuan (around US$300million).

The insane price was nearly 600x higher than the starting price of around 3.35 million yuan.

The fierce bidding was joined by 21 participants and lasted five days – and 980,000 people watched online.

Spodumene assets strategically important
“We believe the auction price indicates a bullish Chinese primary market for future lithium prices as well as the strategic importance of Sichuan spodumene assets,” Daiwa Capital Markets’ analysts Dennis Ip and Leo Ho said in a note.

Yajiang Snowway is undergoing a bankruptcy process, and its Dechenonba lithium mine has estimated reserves of 24.9 million tonnes and a planned 1-million-ton capacity per year

https://stockhead.com.au/news/eye-on-lithium-a-majority-stake-in-a-chinese-lithium-mine-just-sold-for-us300-million-at-auction/