Galaxy Resources Limited (ASX:GXY) Finalises Jiangsu Project Investment Contract
Perth, Dec 15, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) (PINK:GALXF) today announced it has signed the Project Investment Contract (PIC) for the Jiangsu Lithium Carbonate Plant with the Zhangjiagang Free Trade Zone Administrative Committee (ZFTZAC). Mayor Xu, head of the ZFTZAC visited the Company in Perth last week to finalise the PIC which supersedes the Letter of Intent (LOI) between the parties and confirms all commitments made to Galaxy that were announced in May 2009.
The PIC provides for land use for 50 years in an ideal location for the production of battery grade lithium carbonate. The site will be serviced by a 500m conveyor between the ocean bulk shipping wharf and the plant to facilitate inexpensive delivery of the Mt Cattlin spodumene from the mine.
The site will be serviced by reticulated natural gas, electricity, water, waste water drainage, steam and telecommunications to the site boundary at no cost to Galaxy as a condition of the contract. Generous taxation concessions are also a provision of the contract and will assist Galaxy in being the lowest cost lithium carbonate producer in China.
In addition, the site is next to a 2.4 million tpa sulphuric acid plant that will provide cheap concentrated sulphuric acid, a major cost item in the lithium carbonate process. The other major consumable is soda ash (sodium carbonate) which will be sourced from China's second largest synthetic soda ash plant also located within the chemical park.
The site is currently being filled, leveled and ready for site works next week. Construction of the plant is expected to commence on schedule in Q1 2010 with piling and foundations. This schedule is in accordance with the planned plant start up in Q4 2010.
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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