Perth, May 5, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has appointed Hatch Project Consulting Shanghai Co. Ltd (Hatch China), a subsidiary of the Hatch Group to complete the Definitive Feasibility Study (DFS) of the lithium carbonate plant in China.
Galaxy recently announced positive results from a Pre-feasibility Study (PFS) for a lithium carbonate plant in Ravensthorpe, Western Australia. According to the PFS, the addition of the downstream processing component of the project increased the Net Present Value to a range of $310 million to $360 million. The PFS results also indicated that the economics of the project could be improved by locating the chemical plant in China where it is closer to the end markets where there is a cheaper source of acid, soda ash, electricity and consumables.
Hatch China has 20 years project experience in the Peoples Republic of China (PRC). The Hatch China team has successfully completed assignments on over 260 projects with a capital value in excess of US$2 billion. The office in Shanghai has a full time staff of 70 and is an integral part of the global Hatch organisation.
Galaxy Managing Director, Iggy Tan said the Company had selected Hatch China due to its sound knowledge of PRC codes and regulations and its understanding of local cultures, conditions and requirements for project development.
"The Hatch China team has a wide network of suppliers and construction contractors in China as well as strong relationships with many design institutes, supervision companies and government authorities," said Mr Tan.
"The team in China will also be supported by the process department from Hatch Brisbane. This department has highly regarded international experience in the design and operational support of metallurgical and chemical plants, and has recently completed a lithium carbonate design project utilizing a similar concentrate to that proposed by Galaxy."
Urumqi Engineering & Research Institute of Nonferrous Metals will provide support to Hatch on the PFS. The institute which was established in 1958, has completed designs of more than 3000 projects in China including the Xinjiang Lithium, Sichuan Aba Lithium, Xin jiang Hao Xin Lithium, Wen Yuan and Hunan Xiang lithium plants.
The DFS team will be headed by Mr Mike Kitney from MSP Engineering Pty Ltd who was study manager for the project's PFS. Mr Kitney was previously process engineer for Minproc and was involved in the development of the Sons of Gwalia lithium carbonate plant in 1995 at Greenbushes, Western Australia.
"We have gathered a very strong team of lithium carbonate design experience from around the world for this project and we expect to complete the DFS work by end of Q3 2009," said Mr Tan.
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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