Huati Lighting Technology’s said it was dropping a plan to buy a lithium mine in Mozambique.
Huati Lighting decided to ditch the planned acquisition announced less than a month ago because it could not reach an agreement with the target company, Kyushu Resources, on key mine development terms, the prospective buyer said recently.
On Dec. 26, Chengdu-based Huati Lighting said that a unit would pay USD3 million for 85 percent of Kyushu Resources, which was set up in August and owns the No. 11,682 exploration rights in Mozambique’s Zambezia province.
Falling lithium prices are another reason why Huati Lighting is walking away, it said. But last month the company had said that if there was no significant change in lithium carbonate prices, the project was likely to gross USD103.6 million in annual revenue with a profit of USD45.6 million.
Neither party needs to compensate the other, as the withdrawal was mutually agreed, Huati Lighting said.