Galaxy Resources Limited (ASX:GXY) Finalises Long Term Shipping Arrangements To China
Perth, Feb 10, 2010 AEST (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.
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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