CCM: BTR partners with REG to develop natural graphite deep processing business 09-29-2016

Summary: In April 2015, BTR signed a cooperation agreement with REG in an attempt to integrate upstream mineral resources and develop graphite deep-processing business. CCM believes that this will give support to BTR in improving its position and competitiveness in Li-ion battery anode material segment.

Source: Baidu

On 9 April, 2015, Shenzhen BTR New Energy Materials Co., Ltd. (BTR) announced that it had signed the Cooperation Agreement on the Yunshan Graphite Project (Luobei County, Hegang City, Heilongjiang Province) with China Railway Resources Group Co., Ltd. (REG). On the basis of the exploration and mining rights held by REG and the deep processing technology and market shares owned by BTR, the 2 sides plan to give full play to each other and cooperate in graphite exploitation, beneficiation and deep processing, so as to achieve mutual benefits.

Company information
- BTR is dedicated to the R&D, production and sales of Li-ion battery anode materials. It takes lead in the global sales. Meanwhile, the enterprise is continuously developing related products set in the Li-ion battery material industrial chain, including cathode materials and conductive materials.
- REG is an internationalized and comprehensive mineral development firm integrated with geological prospecting, mine exploitation and trade & logistics. Its activities cover the exploitation and sales of noble metal, nonferrous metal, ferrous metal and nonmetal, the design, research and consultancy regarding the technology for the exploration and exploitation of natural resources at home and abroad and the imports and exports.

Accordingly, BTR and REG intend to carry out all-round cooperation centered in the exploitation and beneficiation in Yunshan graphite mine and the graphite deep processing in Hegang City.

Specifically, the cooperation will combine all advantages such as mineral resources, deep processing technology, market channels and industrial chain together, which will give support to BTR in its improvement in position and competitiveness in Li-ion battery anode material segment. This is in line with the enterprise’s business strategic positioning.

At the earlier stage during the cooperation, the projects involving the exploitation in Yunshan graphite mine and the graphite deep processing will be carried out, while the graphite beneficiation project will not be started up. Of this, Li-ion battery anode materials will be given first place in the graphite deep processing project, to form a deep processing production base for natural graphite-based products, such as spherical graphite, high-purity graphite, graphite emulsion and fluorinated graphite.

Graphite project carried out by BTR and REG, 2015


Cooperation approach

Exploitation in Yunshan Graphite mine

REG is to transfer 30% of shares in its wholly-owned subsidiary, Yunshan Graphite Mining Co., Ltd. (Yunshan Graphite) to BTR, and then they will together control this joint venture (JV) at a ratio of 70:30. The JV is responsible for the exploitation and operation of Yunshan graphite mine.

After equity transfer, Yunshan Graphite shall pay the rest USD19.62 million (RMB120.50 million) to the local government department for the exploration right in the core area of Yunshan graphite mine.

REG and BTR will invest USD14.81 million (RMB91 million) and USD6.35 million (RMB39 million) respectively into Yunshan Graphite to ensure its operation.

Graphite deep processing in Hegang City

REG and BTR will set up a natural graphite deep processing enterprise namely Hegang BTR Materials Co., Ltd. in Xing’an Dist., Hegang City at a ratio of 45:55, registered capital being USD16.28 million (RMB100 million). This JV will focus on the investment and financing activities for the graphite deep processing project and carry out research, design, construction and operation about Li-ion battery anode materials and other graphite related deep processed products.

The JV will undertake the 41 ha area targeted by Yunshan Graphite.

The JV will establish a production capacity of >30,000 t/a for Li-ion battery anode materials and other deep processed products based on natural graphite, of which 10,000 t/a Li-ion battery anode material production line will be launched in the 1st phase.

Graphite beneficiation in Hegang City

REG and BTR will build a graphite beneficiation enterprise in Luobei County, Hegang City at a ratio of 50:50, registered capital reaching USD8.14 million (RMB50 million). The JV will take the responsibility to make investment and financing for the graphite beneficiation project and launch related design, construction and operation activities.

The JV will initiate the construction for the graphite beneficiation project and will first go through the land requisition formalities (forest land included) for tailing reservoir, based on the graphite fine powder market and the minerals integration situation. 

Source: Shenzhen BTR New Energy Materials Co., Ltd. & CCM


About CCM:

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