Summary: In late April 2024, Hunan Yuneng and Wintrue Holding ushered in new progress of phosphorus ore mining.

On 25 April, 2024, Hunan Yuneng New Energy Battery Material Co., Ltd. (Hunan Yuneng) announced that its subsidiary, Guizhou Yuneng Mining Co., Ltd. (Yuneng Mining) obtained the mining license of Huangjiapo phosphorus ore in Daoping Town, Fuquan City, Guizhou Province issued by Department of Natural Resources of Guizhou Province. The mining capacity is 1.20 million t/a and the validity period is from April 2024 to April 2034.

Hunan Yuneng said that the company would accelerate the implementation of the mining project and scale mining is expected to be realised in H2 2025. At that time, the company will have advantages of integrated production of "phosphorus ore—phosphorus chemical—precursor—cathode material", which will enable it to reduce raw material costs and mitigate the risk of impact on production and operation caused by price fluctuation of raw material prices.

On 27 April, 2024, Chengdu Wintrue Holding Co., Ltd. (Wintrue Holding) disclosed that two phosphorus mines of its wholly-owned subsidiary, Leibo Kairui Phosphorus Chemical Co., Ltd. (Leibo Kairui) were granted recordation for mineral resources reserve assessment by Sichuan Provincial Natural Resources Department. These two phosphorus mines—Ajuluoxia phosphorus ore mine and Niuniuzhai North Mining Area western section, are located in Leibo County, Liangshan Yi Autonomous Prefecture, Sichuan Province.

Based on the recordation report, both mining areas have large-scale measured resource reserves. Specifically, the measured phosphorus ore resources of Ajuluoxia phosphorus ore mine reach 138.70 million tonnes, with the average grade of P₂O₅ hitting 20.03%; the measured phosphorus ore resources of Niuniuzhai North Mining Area western section hit 228.80 million tonnes and the P₂O₅ average grade is 19.15%. By obtaining this recordation, Wintrue Holding's total measured phosphorus ore reserve reaches 549 million tonnes.

According to the conventional process of China's mineral resource development, enterprises should obtain the exploration right of phosphorus ore, and then apply for reserve recordation to relevant departments after the reserves are measured, and finally apply for approval of mining right and establish phosphorus ore mining projects. Wintrue Holding stated that the company's next step is to undergo relevant formalities of the mining rights of the above two phosphorus ore mines.