Pilbara Minerals, Liontown sink as CATL receives approval for mine reserves
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The news: Lithium stocks led losses in early trading on the ASX after Chinese authorities approved reserve reports from major lithium producers CATL and Gotion High-Tech.
The numbers: Lithium miners Pilbara Minerals (-6.7%), Liontown Resources (-6.1%), IGO (-5%) and Mineral Resources (-4.9%) made up four of the five worst performers on the ASX 200 at 10:45am AEST.
Miners were the second worst performing sector, down 0.9% as the ASX 200 lifted 0.1%.
The context: CATL's Jianxiawo mine has received reserve approval, Bloomberg first reported, having been halted since last month.
CATL, the world's largest manufacturer of batteries for electric vehicles, is now closer to a mining permit and a restart for Jianxiawo, an unnamed source said.
Gotion High-Tech, which also operates in the mining hub of Yichun, has also won the approval from China's Ministry of Natural Resources, according to the report.
CATL and Gotion High-Tech were two of eight miners asked by Yichun authorities to submit reserve reports by the end of September. The Yichun hub has been in the spotlight after an audit uncovered a series of administrative shortcomings, leading to increased lithium price volatility.
The source: Bloomberg
