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Perth, Feb 10, 2010 (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF), today finalised a long term contract for the shipping of spodumene concentrate to China with Hong Kong based company, Pacific Basin Shipping Limited (Pacific Basin).
The Pacific Basin shipping contract provides a five year fixed price arrangement to ship Galaxy's spodumene concentrate from Esperance Port in Western Australia to Zhangjiagang Port, Jiangsu Province in China.
Galaxy Resources Managing Director, Mr Iggy Tan, said the contract delivered both cost efficiencies and long term security for Galaxy customers and shareholders.
"We are very pleased to fix an important variable component of our costs for the next five years," Mr Tan said. "The ocean freight rates agreed with Pacific Basin are attractive and below our definitive feasibility study expectations."
Pacific Basin is one of the world's leading owners and operators of modern handysize and handymax dry bulk vessels, operating a large, uniform fleet of geared bulk carriers with sizes ranging from 25,000 to 60,000 deadweight tonnes.
Listed on the Hong Kong Stock Exchange in 2004, Pacific Basin primarily operates in the Asia Pacific region but has offices in all major markets, allowing the Company to provide global, round-the clock service to its customers which are mainly bluechip producers and end-users of industrial commodities.
ASX:GXY) (PINK:GALXF), today finalised a long term contract for the shipping of spodumene concentrate to China with Hong Kong based company, Pacific Basin Shipping Limited (Pacific Basin).The Pacific Basin shipping contract provides a five year fixed price arrangement to ship Galaxy's spodumene concentrate from Esperance Port in Western Australia to Zhangjiagang Port, Jiangsu Province in China.
Galaxy Resources Managing Director, Mr Iggy Tan, said the contract delivered both cost efficiencies and long term security for Galaxy customers and shareholders.
"We are very pleased to fix an important variable component of our costs for the next five years," Mr Tan said. "The ocean freight rates agreed with Pacific Basin are attractive and below our definitive feasibility study expectations."
Pacific Basin is one of the world's leading owners and operators of modern handysize and handymax dry bulk vessels, operating a large, uniform fleet of geared bulk carriers with sizes ranging from 25,000 to 60,000 deadweight tonnes.
Listed on the Hong Kong Stock Exchange in 2004, Pacific Basin primarily operates in the Asia Pacific region but has offices in all major markets, allowing the Company to provide global, round-the clock service to its customers which are mainly bluechip producers and end-users of industrial commodities.
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.
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