Galaxy Sells First Lithium Carbonate from Jiangsu
Sydney, May 24, 2012 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) is pleased to announce the sale of the first batch of lithium carbonate product (Li2CO3) from its wholly-owned Jiangsu Lithium Carbonate Plant ("Jiangsu" or "the Plant") in China, marking the first revenue stream from the Plant.
The lithium carbonate was produced using spodumene concentrate from Galaxy's wholly-owned Mt Cattlin mine in Western Australia ("Mt Cattlin").
The first seven tonnes of lithium carbonate from Jiangsu was sold to a Chinese customer as technical grade lithium carbonate, despite the product exceeding expectations by meeting battery grade level purity. Galaxy said the quality of the first sales batch averaged 99.5% purity Li2CO3. In addition, sodium, magnesium, iron, and sulphate impurity levels were lower-than-expected.
Galaxy said achieving battery grade level purity was a major achievement, particularly as the purification units installed to achieve battery grade quality and remove impurities (purification plant and removal ion-exchange units) were not used at this stage. The purification units will be brought on line and optimised in the next few weeks as part of the ramp up schedule.
The Company said it had achieved continuous lithium carbonate production and plant stability after achieving first production last month. All areas of the Plant are performing well and according to expectations.
Galaxy Managing Director, Iggy Tan said: "This first sale represents the first cash flow from the processing of Mt Cattlin concentrate into lithium carbonate at the Jiangsu operation and is another step forward with our business plan of developing Galaxy as a fully integrated lithium company.
"We continue to improve operations at Jiangsu to ensure the quality of the product reaches the highest grade specifications desired by the lithium-ion battery sector, although it was very satisfying that even in the early ramp up phase we successfully produced 99.5% grade product. We continue to ramp up throughput and lithium carbonate production and remain on track to reach the 17,000 tonne per annum design capacity within 12 months," Mr Tan said.
The A$100 million Jiangsu Plant is the first fully-automated lithium carbonate plant in China and one of the most highly sophisticated plants of its kind in the world. Galaxy has long term offtake framework agreements signed with 13 major cathode producers in China and Mitsubishi Corporation of Japan (5,000 tpa) for 100% of Jiangsu's design capacity.
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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