On January 18, 2022, Suining Chengxin held the commissioning ceremony, and the annual output of 30,000 tons of lithium hydroxide project was officially ignited and launched, and entered the trial production stage.
In October 2020, Chengxin Lithium signed an investment agreement with the Management Committee of Shehong Economic Development Zone in Sichuan to invest and construct an annual output of 30,000 tons of lithium hydroxide project in Shehong city, which is one of the key projects supported by the local government. At the end of 2020, the project started construction. After a year of construction, it has built a domestic first-class and international leading lithium hydroxide production line.
Suining Chengxin lithium hydroxide project with an annual output of 30,000 tons was put into operation
On December 14, President Emmerson Dambudzo Mnangagwa of Zimbabwe, Vice President of Zimbabwe, Minister of Mining and Mining Development, and Chairman of the Zimbabwe Mining Association visited Chengxin’s Sabi Star Lithium Mine Project.
Xinhua News Agency, ZBC TV, ZTN and other domestic and overseas medias reported the news.
Mugova Elfas, the local liaison supervisor of Sabi Star project, made a specific introduction to the president regarding the development and construction of the project, the upgrade of external roads, the construction of mineral separation infrastructure, and the construction of thermal power plants. He also made a detailed report on the company's participation in the construction of roads, houses, living wells and clinics, the renovation of primary and secondary schools, other community charity and public welfare work. The Sabi Star project is expected to be put into operation early next year, with an annual capacity of 200,000 tons of lithium concentrate. It will provide 500 to 600 jobs and ease the pressure on local employment after the project starts to operate.
As the visit ends, the president completed the groundbreaking ceremony with an excavator operating by himself and made statements to all participants.
President Mnangagwa stated that, "It is our most favorable project, and it is expected to become a high-capacity, high-value-added integrated project. Together with other projects, it will promote the modernization of Zimbabwe. I hope the Chinese professionals on this project could bring the relevant knowledge to our local people, to cultivate a group of skilled workers for Zimbabwe. It is consistent with the requirements of the "National Development Strategy 1 (NDS1)" that we follow for developing the mining industry."
President Mnangagwa also stated that the project has always been committed to creating wealth for more people in the region and the province, bringing the people of Zimbabwe to live a better life, "I am very pleased that before this project starts to operate, the Company has already made contributions to the people of Hela. The Sabi Star project will upgrade the educating facilities for the local primary and secondary schools. Because of the project, the past mining model of unsustainable development and failure to create local value is gone forever.”
The speech of President Emmerson Mnangagwa has greatly encouraged the local people, colleagues in Zimbabwe and Chinese member of Chengxin Lithium. Xu Hui, the general manager of Sabi Star project, presented a gift from China to the president, marking the successful conclusion of the visit.
The sun and the moon are in full bloom and the years are new. After a fruitful year of 2022, we are now looking forward to 2023. At this wonderful moment of welcoming the new year, I would like to extend my New Year wishes and sincere greetings on behalf of the company to all partners, leaders at all levels, friends from all walks of life, all employees and their families who care about and support the development of the company!
Beat the drum to urge the boat to ride steadily and sail forward bravely. 2022 is a year for Chengxin Lithium to maintain a good momentum of development, a year for our business performance and strategic development to achieve gratifying results, and a year for all employees to meet challenges, undergo tests, strive to overcome difficulties, and successfully complete tasks. We worked together to give a satisfactory annual answer sheet with "ingenuity and action", "confidence and sharpening", "determination and foresight", and "initial intention and commitment", which continued the good momentum of leapfrog development in recent years.
--Craftsmanship and action. We have incorporated "simplicity, efficiency, pragmatism and innovation" into our blood, and has taken practical actions to accomplish various production tasks and targets. The 40,000-ton lithium compound project of Zhiyuan Lithium is in stable production; the 30,000-ton lithium hydroxide project of Suining Chengxin was completed and reached production successfully; the 1,000-ton lithium metal project of Chengwei Lithium has been completed with a capacity of 500 tons; Aoyinuo mining has significantly increased its resources by increasing reserves; and the SDLA brine project in Argentina has obtained independent operation rights. At the same time, we actively promote the construction of projects under construction. The construction of 60,000 tons of lithium compound project in Indonesia is progressing smoothly; the Sabi Star lithium-tantalum mine project in Zimbabwe is scheduled to be put into operation in the first quarter of 2023; the Murong mine in Sichuan is making every effort to promote the work related to exploration to mining. We always use craftsmanship to guide our actions and create the future with our actions.
--Confidence and sharpening. Under the severe tests of deteriorating global economic situation, intensifying geopolitical conflicts, new crown epidemic, and high temperature and power limitation, we made bold choices, forged ahead, tackled difficulties, and responded to extraordinary difficulties with scientific strategies to guard the solid defense line of life and health of all employees of the company, and maintained the good momentum of the company's development, with revenue reaching RMB8.1 billion and net profit reaching RMB4.3 billion in the first three quarters of 2022, creating the best ever operating results. After this battle, all the ordinary brave people of the company have more adequate preparation, stronger confidence and more tenacious will for the trials and tribulations they must undergo on the way forward, and I firmly believe that the pace of our development will be more firm and solid and powerful.
--Determination and vision. During the rapid development period of the lithium new energy industry, Chengxin has shown its determination and vision to move forward at a fast pace. We introduced BYD as a strategic investor to complete a deeper binding with downstream; acquired the remaining equity of Hantara and started the construction of pilot production line, and continued to expand the layout of brine in South America; proposed to issue Global Depositary Receipts (GDRs) on the Swiss Stock Exchange to further broaden overseas financing channels, explore overseas markets and achieve global development. We are determinative and visionary, laid a solid foundation for the long-term development of the company.
--The original intention and commitment. We adhere to the original intention and mission of "Use lithium to contribute to the world's sustainable development", and continue to focus on the field of lithium new energy materials, focusing on "resources, scale, quality and customers" to carry out various tasks. We have seized the opportunity of industry development and achieved a strong production and sales of lithium compound products and a significant increase in business performance. We never forget to actively fulfill our social responsibility, participate in charity activities, and spare no effort to make Chengxin's contribution, which has been highly praised and recognized by many governments and people.
In 2023, we will continue to work with the same attitude as before, make every effort to ensure the production and operation of the projects which are in production, accelerate the construction of the Sabi Star project in Zimbabwe and the 60,000-ton lithium compound project in Indonesia, continue to promote the exploration to mining of the Murong mine, and strengthen the R&D and t