(Yicai) July 16 -- Fosun International-backed Hainan Mining said it will join forces with a unit of Saudi conglomerate Ajlan & Bros Holding to look into collaborating on a lithium salt project in Saudi Arabia.

They will also set up an industrial fund focused on upstream lithium resources, local mineral exploration, and investment opportunities in new energy metal minerals and technologies globally, Haikou-based Hainan Mining announced today.

The deal will leverage Ajlan & Bros' local influence and financial advantages, while relying on Hainan Mining's technical and managerial expertise in metal mine exploration and development, as well as lithium salt processing. There is also potential for the pair to jointly explore further opportunities in the Middle East and other regions, the firm added.

The deal is not expected to have a significant impact on Hainan Mining's operating performance this year, it said.

First-quarter net profit jumped 53 percent to CNY247 million (USD33.99 million) from a year earlier, while revenue fell 9.3 percent to CNY1.11 billion (USD150 million).

Founded in 2007, Hainan Mining was set up by Fosun and Hainan Haigang Group. It works mainly in the iron ore, crude oil and natural gas, and new energy fields. In the first half, the company completed a facility with an annual production capacity of 20,000 tons of battery-grade lithium hydroxide, and it also plans to acquire the Bougouni lithium mine in Mali, Africa for USD120 million. 

Ajlan & Bros Company for Mining, registered in Riyadh, Saudi Arabia, focuses on mineral resource development and smart manufacturing in the chemical industry.

Editor: Tom Litting