Albemarle says Chile lithium plant operating normally after incident last week
Albemarle’s La Negra lithium processing plant in Chile is operating normally after an “incident” last week, the company told Reuters on Tuesday, after a local lawmaker said authorities had opened an investigation.
There were no injuries and sales of the metal used to make lithium-ion batteries are not expected to be affected, Albemarle said, without providing additional details.
It was not immediately clear if operations had temporarily shut down last week. Albemarle gave no more details of the incident.
Jaime Araya, who represents the Antofagasta region where the plant is located in the Chilean Congress’ lower house, the Chamber of Deputies, last week sent a letter to Chile’s mining regulator and labor office requesting an inspection of the site after receiving a complaint that a pipe containing acid had burst.
Araya on Tuesday told Reuters he was informed that the labor inspector’s office had opened an investigation.
A source familiar with Albemarle’s operations said such probes are standard procedure and that the plant is operating normally. A second source added that the problem affected only one tank.
A union leader for plant workers, Elias Torres, said he could not comment because an investigation was underway.
The labor inspector’s office said it could not provide information because the matter was under review.
Albemarle’s shares were down slightly in Tuesday midday trading to $80.14.
Charlotte, North Carolina-based Albemarle on Monday said its chief operating officer Netha Johnson will leave the company as part of a management reorganization. Johnson’s exit is not connected to the Chilean incident, a source told Reuters.
(By Daina Beth Solomon, Fabian Cambero and Ernest Scheyder; Editing by Alexander Villegas, Jan Harvey and Alistair Bell)
Lithium miners retrace share gains with Chinese output in focus
Lithium producers’ shares fell — following sharp gains on Monday that were driven by the closure of a major mine closure — as the market weighed the outlook for Chinese output of the battery metal.
Stocks of miners declined in Hong Kong and Australia. Tianqi Lithium Corp. was about 8% lower as of 12:23 p.m. in the city after jumping 18% in the previous session, and Ganfeng Lithium Group Co. fell 5%, retracing about a quarter of its spike. In Australia, PLS Ltd. and Liontown Resources Ltd. also dropped.
The lithium market was rocked after Contemporary Amperex Technology Co. Ltd. confirmed the suspension of its Jianxiawo mine in the hub of Yichun, a move that may help to ease oversupply. The project accounts for about 6% of global lithium output, according to Bank of America Corp. There’s speculation other mines in the area could also be suspended as Beijing tackles a glut as part of its anti-involution drive to curb excessive competition and overcapacity.
Lithium futures on the Guangzhou Futures Exchange extended gains, although they rose less than daily-limit jump of about 8% seen on Monday.
Still, lithium-carbonate prices may lack the impetus for a sustained rise, Shanghai Securities News reported. The problem of excess capacity has not fundamentally improved, and CATL’s project may restart, it said, citing analysts.
In Yichun, the local authorities have requested that companies facing similar regulatory scrutiny submit updated reports on their mineral reserves by Sept. 30, without yet mandating any more production suspensions.
The Jianxiawo case established a “strict tone” for regulatory approvals and enforcement, potentially broadening the extent of production halts and exacerbating supply shortages, Yongan Futures Co. said in a note.
“With a decisive outcome expected by Sept. 30, speculative trading activities might repeatedly emerge,” the analysts said. They also highlighted divergent views on time lines for mining license approvals or renewals.
(By Alfred Cang)
No comments:
Post a Comment