Xinfeng Investments has requested that the Ministry of Mines and Energy speed up approval of its license to export processed lithium ore before the year ends.

Xinfeng representatives said the delay in issuing the export permit and mining license, coupled with low lithium prices, is crippling the company.

The persistent decline in lithium prices during the past three years affected exploration and mining operations at Xinfeng Investments near Uis.

The company started mining in 2023 through a joint venture with a local company, Longfire. Xinfeng has 10 mining claims, a mining license, and a 600 million dollar lithium processing plant at the site.

Xinfeng Investment has an exploration license over a much wider area, where more lithium deposits were found.

The company opened a pit about 10 kilometres from the main operations under that exploration license, and approval to start mining is still pending.

Xinfeng logistics and general managers said the company submitted all necessary documents for the mining license and export permit six months ago.

The ministry is investigating the company's operations at the exploration site, where it is suspected that Xinfeng violated the law by using an exploration license to mine.

Mining commissioner Isabella Chir-chir ordered the company to cease operations in November, and the director, Yie Yimming, has since apologised in a letter for violating their exploration conditions. 

Chir-chir said the ministry will not comment until the investigation is done.

Asked why the ministry is taking long to approve the application, the commissioner indicated that the process normally takes up to 12 months.