The Shenzhen-listed Tibet Mineral Development Company is to raise an extra capital of 1.5 billion yuan (USD 219.73 million) to fund its lithium and copper mining projects in occupied Tibet, according to China’s official Xinhuanet news service May 7. These two minerals currently make insignificant contribution to the company’s total income which in 2009 came mainly from chromite mining at 69.62 percent.
The report said the company will use 964 million yuan of the newly raised fund to develop its major subsidiary the Tibet Zabuye Lithium Technologies Co., Ltd.
Zabuye Salt Lake, located at Zhongba (Tibetan: Drongpa) County in Shigatse Prefecture, ranks first in the PRC in terms of lithium reserves and is contracted to the company for 20 years. However, the subsidiary had ceased its operation for many years due to heavy debts. With fresh funding, the company will achieve an annual production capacity of 8,000 tons of lithium carbonate products, the report said.
The company will use another chunk of the new fund on the Tinggong Copper Mine in Nyemo County of Lhasa City, and undertake the electrolytic copper project to turn out 5,000 tons annually, the report cited an announcement from the company as saying.
