(Yicai Global) Dec. 9 -- A lithium carbonate-processing plant belonging to Yongxing Special Materials in China’s eastern Jiangxi province has resumed production after being forced to halt operations amid an environmental pollution investigation.

The plant in Yichun city, know as ‘Asia’s lithium capital,’ resumed production today after a 10-day shutdown from Nov. 29 due to its involvement in environmental pollution. The investigation is still ongoing.

Yongxing announced this morning that the inspection and maintenance of production equipment at wholly owned unit Jiangxi Yongxing Special Steel New Energy Technology had been completed and production would resume.

According to the probe results announced by the city government on Dec. 6, the local environmental protection department found on Nov. 24 that the water quality of the Jin river, which flows through its territory, was abnormal.

Further investigation revealed that this was caused by excessive levels of thallium, which is toxic. And the source of the pollution was mainly a local lead recycling enterprise called Jiangxi Qijin Materials.

The Yichun government also noted that both Qijin and Yongxing Special Steel New Energy Technology were alleged to have discharged pollutants by evading supervision, adding that the police have opened a case against the pair, which is being investigated.

Established in 2017, Yongxing Special Steel New Energy Technology is the main entity of Zhejiang-based parent Yongxing Special Materials to carry out its lithium processing business.

In the first nine months of this year, the parent company’s lithium processing business sold 13,770 tons of lithium carbonate. The business made a net profit of over CNY4 billion (USD575 million), accounting for more than 90 percent of the firm’s total, according to a statement released earlier by Yongxing Special Materials.

Yichun boasts the world’s largest lepidolite mineral resources, with its lithium oxide mining capacity making up 31 percent of China’s total and 12 percent of the world’s. Its output of lithium carbonate totaled 81,000 tons last year, accounting for more than a quarter of China’s production.

Besides Yongxing, the Yichun-based lithium carbonate-processing plants of two other listed firms, Zhejiang Kanglongda Special Protection Technology and Anshan Heavy Duty Mining Machinery, also halted production due to the pollution issue. The two resumed operations on Dec. 7 and yesterday, respectively.

Editors: Dou Shicong, Peter Thomas