Yulho announced on the 23rd that it will establish a wholly owned subsidiary, Yulho Tanzania. Through the newly established company, Yulho plans to launch new businesses related to mining development and raw material (mineral) trading, including nickel, lithium, and graphite. The capital invested in the new company will amount to 5 million dollars.
Yulho Tanzania’s mining development and trading business will be centered in Tanzania, Africa. It is known that more than 30% of the world's minerals are deposited on the African continent. Among them, Tanzania ranks 6th in the world for graphite reserves and is rich in various cathode material minerals such as nickel.
Preparations for smooth business operations have also been made. To conduct related businesses locally, rights granted by the government such as an Exploration License (PL) and Mining License (ML) are required. Yulho recently received an official letter (Guarantee Letter) from the local Minister of Energy and Minerals confirming support for the business.
The area selected by Yulho for mining development in Tanzania is Lindi Province. The Lindi area is located right next to the Mahenge mine and contains large deposits of high-purity nickel, graphite, and lithium. The Tanzanian government recently designated the Lindi area as a “Special Strategic Mineral Area” in recognition of this.
Yulho Tanzania plans to establish a separate joint venture (JV) with a local Tanzanian partner company under local laws to carry out mining development and trading businesses. The local partner company is known to hold multiple PLs for various mineral types.
Through this joint venture, Yulho Tanzania plans to acquire PL and a Primary Mining License (PML) and initially export nickel ore with a content level of about 7-8%. In the future, it will also conduct its own ore beneficiation to increase the nickel content to over 20% and promote the high value-added export of minerals.
A Yulho official said, “As global battery demand surges, the importance of securing key minerals is increasing,” adding, “Yulho has decided to pursue mining development projects in Tanzania to significantly expand its business area in the upstream sector of secondary battery raw materials.”
He continued, “The Lindi area is not only diverse in mineral types but also has high-grade ores, making it a highly economical region,” and added, “Yulho Tanzania plans to prioritize nickel, which has a high content among many minerals, in its related business and is already in discussions with major domestic and international companies for supply.”
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