Jiangsu Plant October lithium carbonate production 428 tonnes, up 50% vs
Total sales for October 273 tonnes, recorded revenue of A$1.7 million
(RMB 11.2 million)1.
Battery grade lithium carbonate sales commenced
100% of battery grade production met tight quality specifications
Further reduction in impurity levels across product
Calcination and sulphation kiln achieved 92% on line time
12 month ramp-up of Jiangsu Plant on schedule
PERTH, Australia, Nov. 13, 2012 /CNW Telbec/ - Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") advises that lithium carbonate production at its wholly-owned Jiangsu
Lithium Carbonate Plant ("Jiangsu Plant" or "Jiangsu") was 428 tonnes in October - an increase of 50% month-on-month and in
line with Jiangsu's 12 month ramp-up schedule.
Production consisted of 154 tonnes of superior battery grade product
(99.5% purity, or above), with the balance technical grade product.
October lithium carbonate sales totalled 273 tonnes, recording revenue
of A$1.7 million (RMB 11.2 million)1, including VAT. While sales from Jiangsu comprised mostly technical
grade product, Galaxy recorded initial sales of battery grade product
following customer qualification and testing.
All of the battery grade output met the necessary quality
specifications, which include only certain levels of impurities.
Statistical process control ("SPC") quality analysis showed further
reductions in impurity variation within a narrow range, representing
outstanding quality reliability.
Sales from Jiangsu will comprise mostly technical grade product until
the battery grade product fully completes customer qualification
processes and testing. As reported in September, battery grade samples
have been sent to over 50 potential battery cathode customers in China.
In addition, battery grade samples have been sent to a number of
Japanese customers for product qualification and testing.
Galaxy Managing Director, Iggy Tan, said: "We are very pleased with
increased lithium carbonate output we've seen at Jiangsu for the month
of October as we continue to meet our ramp-up targets. The commencement
of sales of battery grade lithium carbonate and the further
improvements to product quality are a huge step towards Jiangsu
becoming a significant producer of superior quality lithium carbonate
for the lithium battery market."
At the front end of the Plant, the calcination kiln utilisation rate
(amount of time on line) reached 92% during October. Temporary lifters
were installed in the calciner to provide better spodumene pre-heating
and heat transfer within the kiln. These modifications have
successfully reduced kiln off gas temperatures, thereby allowing
increased kiln feed rates and kiln stability. The kiln feed rate was
slightly reduced due to the pending replacement of internal lifters in
the kiln expected end-November.
The focus during October was to improve the stability, on line rate and
utilisation of the back end of the Plant. During the month, the
utilisation rate of the lithium carbonate precipitation plant and dryer
reached 73% on line time. Again, this was an excellent result for the
particular stage of the ramp-up.
An internal audit for the Jiangsu Plant's quality, environment, safety
management system was also completed in October. British Standard
Institution ("BSI") carried out a third party audit in early November
and the site is expected to receive the ISO 9001, ISO 14001 and OHSAS
18001 quality/environment/safety certification in several months.
About Galaxy (ASX: GXY)
Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium
company with lithium production facilities, hard rock mines and brine
assets in Australia, China, Canada and Argentina. The Company is an
integrated lithium mining, chemicals and battery company listed on the
Australian Securities Exchange (Code: GXY) and is a member of the
S&P/ASX 300 Index.
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 process 137,000 tpa of spodumene concentrate
which will feed the Company's wholly-owned Jiangsu Lithium Carbonate
Plant in China's Jiangsu province. The Jiangsu Plant has commenced
production and 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 to develop the Sal de Vida (70%) 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 promise
as a future low cost brine mine and lithium carbonate processing
facility. The Company also owns the James Bay (100%) 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.
Caution Regarding Forward Looking Information.
This document contains forward looking statements concerning Galaxy.
Forward-looking statements are not statements of historical fact and
actual events and results may differ materially from those described in
the forward looking statements as a result of a variety of risks,
uncertainties and other factors. Forward-looking statements are
inherently subject to business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause the
Company's actual results to differ materially from those expressed or
implied in any forward-looking information provided by the Company, or
on behalf of, the Company. Such factors include, among other things,
risks relating to additional funding requirements, metal prices,
exploration, development and operating risks, competition, production
risks, regulatory restrictions, including environmental regulation and
liability and potential title disputes.
Forward looking statements in this document are based on Galaxy's
beliefs, opinions and estimates of Galaxy as of the dates the forward
looking statements are made, and no obligation is assumed to update
forward looking statements if these beliefs, opinions and estimates
should change or to reflect other future developments.
Not For Release in US
This announcement has been prepared for publication in Australia and may
not be released in the U.S. This announcement does not constitute an
offer of securities for sale in any jurisdiction, including the United
States, and any securities described in this announcement may not be
offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of
1933, as amended. Any public offering of securities to be made in the
United States will be made by means of a prospectus that may be
obtained from the issuer and that will contain detailed information
about the company and management, as well as financial statements.
1 Specific details regarding pricing, sales volume, product split and
cost structure is subject to confidentiality obligations of sales
contracts and competitor sensitivity.
SOURCE: Galaxy Resources Limited
For further information:
Galaxy Resources Ltd
Tel (office): +61 (0)8 9215 1700
Tel (office): +61 (0)8 9485 8888
Tel (mobile): + 61 (0)488 400 248