Perth, June 9, 2009 (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) is an Australian-based integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange and is a S&P/ASX 300 Index Company. Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western Australia where it mines lithium pegmatite ore and processes it on site to produce a spodumene concentrate and tantalum by-product. At full capacity, Galaxy will produce 137,000 tpa of spodumene concentrate and 56,000 lbs per annum of contained tantalum. The concentrated spodumene is shipped to Galaxy's wholly-owned Lithium Carbonate Plant in China's Jiangsu province. Once complete, the Jiangsu plant will produce 17,000 tpa of battery grade lithium carbonate, the largest producer in the Asia Pacific region and the fourth largest in the world.
Galaxy is also advancing plans for a lithium-ion battery plant, to produce 350,000 battery packs per annum for the electric bike (e-bike) market. The Company also has a farm in agreement with TSX-listed Lithium One Inc to acquire up to 70% of the James Bay Lithium Pegmatite Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is positioning itself to achieve its goal of being involved in every step of the lithium supply chain.
Contact
Iggy Tan Managing Director Tel: +61-8-9215-1700 Mob: +61-419-046-397
Galaxy Resources Limited
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