(Yicai Global) March 21 -- Jiangsu Jiuwu Hi-Tech Co. will provide a complete equipment set required for the separation process of China Minmetals Corp.'s salt lake lithium-magnesium separation project in Qinghai province in northwestern China in a deal priced at CNY265.56 million (USD4.18 million).

The company was notified by Minmetals Salt Lake Ltd. yesterday that it has been designated as the supplier of the above equipment, the membrane separation technology developer headquartered in eastern China's Jiangsu province said in its filing yesterday.

The company will furnish the equipment for the 10,000-ton lithium carbonate project of Minmetals Salt Lake. The contract price, which makes up over 100 percent of the company's 2016 audited operating revenue in 2016, will positively and significantly impact its operating performance.

The cooperation with Minmetals Salt Lake will enable it to further promote the industrial application of lithium extraction from salt-lake brine technology, the firm said.

The Qinghai brine is rich in lithium resources, but the ratio of magnesium is also high. Therefore, separating and extracting lithium from the brine is very hard and the demands imposed on magnesium-lithium separation technology are extremely high. The execution of the contract will thus be crucial forJiuwu Hi-Tech to attain greater application of its magnesium-lithium separation technology in local areas.