Two Lions importing sulphur
Perth, June 9, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) today announced it has secured key supplies of sulphuric acid and caustic soda for its proposed lithium carbonate plant in Jiangsu Province, China.
The Company signed a Letter of Intent (LOI) with site neighbour, Two Lions (Zhangjiagang) Fine Chemicals Co., Ltd. (Two Lions) to supply 38,000 tonnes of sulphuric acid per annum for 15 years. The supply arrangement also includes a quantity of sodium hydroxide and steam, as well as access to state of the art wharf unloading facilities.
Two Lions is based in the Yangtze River International Chemical Industrial Park, next door to the proposed site for Galaxy's lithium carbonate plant. Two Lions was founded in 2003 and is a large scale chemical enterprise, predominantly engaged in producing basic chemicals raw materials.
The company has an international solid and liquid berth with the capacity of berthing 70,000DWT dry bulk vessels and 65,000DWT liquid chemical vessels respectively, and 5 chemical barge terminals with the capacity of berthing 1000DWT each.
Managing Director, Iggy Tan said the agreement with Two Lions meant that Galaxy had now locked in key consumable supply and unloading access for its lithium carbonate plant in China.
"Having signed an agreement with Jiangsu Huachang Chemical Co. last week for the supply of soda ash for our lithium carbonate plant, we now have all the required consumable supplies in place," said Mr Tan. "In addition, having access to Two Lions wharf unloading facilities is a key advantage of the plant location."
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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