Shanshan Group announced Tuesday that it has signed a Cooperation Framework Agreement with Heron Resources Limited (Heron), an Australia-based company engaged in nickel mineral exploration, stating that both parties will jointly operate a plant in Australia and produce nickel-cobalt concentrate—an important raw material for lithium batteries.

Known as the biggest ion battery material supplier in China, Shanshan Group has been involved in the lithium battery industry for many years. An insider from Shanshan Group told China Business News that if this deal is done, the supply chain of its new-energy industry will be enhanced.

Originally in garment manufacturing, Shanshan Group has expanded into several fields: new energy, new materials, mineral resources, food, biomedicine, building of technology-based industrial parks, and financial investment (It holds US$25 million of equities in the Bank of Ningbo). The insider emphasized that the total investment value cannot be known until a full business analysis is complete.

According to the agreement, Shanshan Group will establish the plant with its own funds and technology and Heron's Yerilla will offer all its nickel-cobalt mines. Both parties will co-operate in the joint venture, with Shanshan Group taking 70 percent of the rights and interests, and Heron 30 percent.

http://www.china-cbn.com/s/n/000004/20090603/020000102188.shtml

(China.org.cn by Fan Junmei June 3, 2009)