(Yicai Global) Dec. 26 -- Lithium miner Youngy has won a supply contract worth CNY83.66 million (USD12 million) with battery maker Guangdong Weihua following the resumption of production at its spodumene mine in Sichuan province after a six-year suspension.

The news spurred Youngy's shares [SHE:002192] to hit limit-up today reaching CNY22 (USD3.14) in the afternoon, before dropping back to a 6.15 percent gain at CNY21.23.

The lithium concentrate needs to be shipped before Dec. 31 and the price can still fluctuate depending on the grade of product tested and accepted, the firm said in a statement yesterday.

Guangzhou-based Youngy is one of three developers of the Gyabjeka spodumene mine on the Qinghai-Tibet Plateau with proven reserves of 2.9 million tons of lithium oxide and probable reserves of a further 2.1 million tons.

The mine was shut down by authorities in December 2013 after heavy rain led to an overflow of wastewater, causing an environmental incident. It was given approval to resume production in June.

Shenzhen-based Guangdong Weihua manufactures lithium-ion batteries and other energy storage materials. The firm can produce 40,000 tons of battery-grade lithium salts each year. Its shares [SHE:002240] closed up 0.68 percent today at CNY7.42.

Editor: Kim Taylor