Soda Ash plant in the industrial complex
Perth, May 11, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has selected a location for its proposed lithium carbonate plant in China. The site selected is within the Jiangsu Province Zhangjiagang Free Trade Zone of the Yangtze River International Chemical Industrial Park in Jiangsu Province of China.
Galaxy has signed a Letter of Intent (LOI) with the Jiangsu Province Zhangjiagang Free Trade Zone (JPZFTZ) Administrative Committee, an agency of Jiangsu Province People's Government to secure the site.
The Yangtze River International Chemical Industrial Park (Chemical Industrial Park) has in excess of 3,379 enterprises including 40 international companies. It is close to the Zhangjiagang port, one of the largest international trade deep water ports along the Yangtze River Valley and the major distributing port in China for containers, timber, plant oil, steel and chemicals. It is also an important cargo transfer port to connect the middle and western parts of China and the provinces alongside the Yangtze River.
In the agreed LOI, the JPZFTZ Administrative Committee has agreed to reserve 53,000 m2 of the proposed land within the Chemical Industrial Park for Galaxy for two years. The site is around 500m from a wharf berth and has access to nine utilities such as water supply, sewage treatment, power supply, steam, telecommunication, natural gas, fire-fighting facilities and paved roads. It is envisaged that Galaxy's spodumene product will be shipped and unloaded at the Zhangjiagang port and transferred to the nearby lithium carbonate plant by conveyor 500m from the berth for conversion.
The LOI is valid but not legally binding, Galaxy shall undergo a public bidding process for the land use right over the reserved land as required by the laws of China.
The proposed site is next to a 2.4 million tonne per annum sulphuric acid plant that can provide concentrated sulphuric acid, caustic soda and steam for the lithium carbonate process.
The second largest soda ash supplier is also located within the chemical park. In addition, cement plants for waste residue disposal and detergent plants for sodium sulphate disposal, both important factors that drive the economics of a lithium carbonate plant, are close by.
Managing Director, Iggy Tan said that the site presented a fantastic location for Galaxy's proposed lithium carbonate facility with all utilities, consumables and processing materials required for lithium carbonate production available internally within the industrial park.
"The Yangtze River International Chemical Industrial Park presents the ideal location for our proposed lithium carbonate facility," said Mr Tan.
"The location provides easy access to cheaper sources of acid, soda ash, electricity and consumables which will significantly reduce the operating costs of the proposed project. Its proximity to end markets will also be a major advantage once the facility is in production.
"We look forward to the completion of the Definitive Feasibility Study (DFS) for this aspect of the project."
Head of JPZFTZ Administrative Committee, Standing Member of Party Committee, and Party Secretary of Zhanjiagang city, Mr Xu Zhonggao said that he was very pleased to welcome the first Australian company to the Chemical Industrial Park.
"There are many international companies operating in our park and we look forward to Galaxy establishing a successful operation here," said Mr Xu
"The Zhangjiagang administrative committee has committed to help Galaxy with the necessary approvals and establishment process and the land use right granting to ensure the project proceeds as planned."
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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