(Yicai Global) Dec. 12 -- Jinyuan EP’s shares plunged by the exchange-imposed daily limit after the Chinese cement maker said it had pulled out of a deal to buy the rest of a salt lake in China’s Tibet Autonomous Region because of the impact of the Covid-19 pandemic.

Jinyuan [SHE: 000546] closed down 10 percent at CNY12.92 (USD1.85) today. The stock almost tripled between July last year and this July because of surging lithium salt prices, but dropped 40 percent in the past five months.

Covid seriously affected on-site due diligence and data collection of Tibet Ngari Liyuan Mining Development, which has the right to develop Baqiancuo Salt Lake in remote Ngari prefecture, so Jinyuan will not buy the remaining 49 percent of the target company, the Hangzhou-based firm said late yesterday.

Jinyuan bought a 51 percent stake in Liyuan Mining for CNY510 million (USD73 million) in November last year. When it announced a private placement plan in June, Jinyuan said it would acquire the rest of the business.

According to the preliminary survey, Baqiancuo Salt Lake has about 160,000 tons of lithium chloride resources and is rich in other mineral resources also, Jinyuan said in November 2021.

Jinyuan started a buying lithium resources last year. In addition to acquiring several projects in Tibet, it also announced plans in July to invest USD2.5 million for the development rights to a block of Cauchari-Olaroz Salt Lake in Argentina’s Salta province. The firm also said it would build a local lithium salt processing plant in the future.

Editor: Futura Costaglione