June 19, 2020 / 1:38 AM / 23 days ago

Australia's Altura Mining inks lithium supply contracts with Ningbo Shanshan; shares soar

June 19 (Reuters) - Altura Mining Ltd said on Friday it had signed multi-year lithium supply contracts with its second-largest shareholder Ningbo Shanshan Co Ltd , sending its shares more than 30% higher.

The Australian miner said it would supply a minimum of 60,000 dry metric tonnes (dmt) of the metal, used to make alloys that make up parts of aircraft and high-speed trains, to the Chinese lithium battery material manufacturer from January 2022.

It will also provide 44,000 dmt of 6% grade lithium ore mineral to Ningbo’s unit Hunan Yongshan Lithium Co Ltd under a separate one-year contract. However, Altura did not disclose any financial details of the contracts.

The deal will make Altura a key supplier to Ningbo’s new lithium chemical plant, which has a planned phase 1 production capacity of 25,000 tonnes per annum lithium carbonate equivalent.

Ningbo Shanshan currently owns a 15.1% stake in Altura.

Altura’s shares soared as much as 30.4% to A$0.073 earlier in the session, their highest level since November 2019.

In March, the miner had secured a financing package worth A$305 million ($208.96 million) to boost its operations amid a delay in resumption of operations of its offtake partners in China due to coroanvirus-led restrictions. ($1 = 1.4596 Australian dollars) (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)

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