Sells First Commercial Shipment Mt Cattlin Spodumene
Galaxy said it sold a large parcel of spodumene concentrate for more than A$5.5 million, representing the first significant lithium revenue stream for Mt Cattlin. The shipment was the fourth shipment of spodumene concentrate exported by Galaxy, with the initial three having been received for processing at Galaxy's wholly-owned Jiangsu Lithium Carbonate Plant ("Jiangsu Plant") in China. Galaxy also sells small amounts of tantalum by-product from Mt Cattlin to Global Advanced Metals, under a long term contract.
Spodumene concentrate from Mt Cattlin is normally reserved for use as a feedstock at the Jiangsu Plant, which commenced production in March 2012. A recent sustained high production level at Mt Cattlin has resulted in spodumene concentrate surplus to the Jiangsu Plant's immediate requirements, which Galaxy offered for sale to third party customers.
The commercial spodumene sale follows the sale of the first batch of lithium carbonate from the Jiangsu Plant by Galaxy last week.
Galaxy Managing Director, Iggy Tan, said: "Between the sale of this spodumene shipment and the first sale of lithium carbonate from our Jiangsu Plant, significant revenue flow into the business has commenced. As we ramp up production at Jiangsu, further sales of lithium carbonate will occur under the long term offtake framework agreements we have in place with customers."
Galaxy has long term offtake framework agreements signed with 13 major cathode producers in China and Mitsubishi Corporation (TYO:8058) of Japan (5,000 tpa) for 100% of the Jiangsu Plant's design capacity of 17,000 tpa of lithium carbonate.
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.
Galaxy Resources Limited