China has approved reserve reports from two lithium producers in Yichun, providing some relief to market concerns over potential output disruptions, reported Bloomberg.
This move comes as regulators closely scrutinise the sector’s excess capacity.
Contemporary Amperex Technology (CATL), whose Jianxiawo mine was suspended last month, has received reserve approval, the media outlet reported, citing sources familiar with the matter.
The clearance moves the sites closer to securing a mining permit and resuming operations, although there is no certainty.
The two miners were part of a group of eight that were asked by the authorities in Yichun, located in the southern Chinese province of Jiangxi, to submit reports on their reserves by the end of September.
This request followed an audit that revealed administrative shortcomings.
The lithium hub has drawn attention in recent months as fears over supply tightened price fluctuations for the battery metal.
The Jianxiawo mine has become the focal point of this turmoil after CATL, a leading global producer of electric vehicle batteries, announced in August that it would halt operations due to an inability to renew an expired mining permit.
Battery manufacturing company Gotion High Tech has also received approval for mining design and ecological restoration plans at its Yichun site.
The company stated that its lithium unit is allowed to mine based on production needs.
CATL chose not to provide any comments, while Yichun’s local government is yet to respond to requests for their input, reported the news agency.
Meanwhile, China Mineral Resources Group, established by Beijing to enhance China's influence in the global iron ore market, has reportedly instructed domestic buyers to halt purchases of any dollar-denominated seaborne cargoes from BHP, reported Bloomberg.
According to sources familiar with the situation, this directive means that no new agreements can be finalised, even for shipments that have already departed from Australia, where BHP operates its mines.
