Galaxy Resources Limited (ASX:GXY) Sells Second Shipment of Tantalum from Mt Cattlin
Perth, Oct 27, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) is pleased to announce it has delivered the second shipment of tantalum concentrate from its Mt Cattlin mine in Western Australia, under its five-year sales agreement with Global Advanced Metals Pty Ltd ("GAM").
The shipment of 242 tonnes had an average grade of 3.3% tantalum pentoxide (Ta2O5), representing a total of 17,610 lbs of tantalum pentoxide.
About half of the world's tantalum is used in the electronics industry to manufacture capacitors and circuit board connectors for mobile phones, personal computers, digital cameras and electronic systems for vehicles.
Tantalum is also used as an alloy additive in nickel-based superalloys in the manufacture of turbine blades for the aerospace industry and land based gas turbines. Other uses include sputtering targets, mill products, cutting tools, surgical implants and specialty chemicals and coatings.
While Galaxy's primary focus at Mt Cattlin is production of spodumene, tantalum occurs as by-product and is recovered with additional processing.
Galaxy Managing Director Iggy Tan said Galaxy was pleased to be able to supply a secondary product from its Mt Cattlin operation, especially considering the tight global tantalum market.
"Supply from our Mt Cattlin mine, though small, is an important source for the industry. The tantalum supply market has been historically around seven million pounds of tantalum pentoxide, with a significant amount coming from the conflict region of Democratic Republic of Congo (DRC).
"With potential legislation in the US enforcing use of conflict-free ore, and with limited number of supply sources, the market is in a shortage," Mr Tan said.
GAM is a global leader in the production of tantalum concentrate (tantalum pentoxide, Ta2O5) The company's Western Australian operations at Wodgina, near Port Hedland, and Greenbushes, near Bunbury, contain the world's largest known resources of tantalum ore.
Galaxy said it was also preparing a third spodumene consignment of around 31,000 tonnes for shipment to China in December 2011.
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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