Perth, Feb 25, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) is pleased to announce that a Memorandum of Understanding has been signed with the Esperance Port Authority in order to investigate, evaluate and progress the export of Spodumene product through the Port of Esperance.
Both parties have formally agreed to enter into preliminary discussions to progress the possible storage, loading and export of the Company's Spodumene product through the port.
Managing Director, Mr Tan said that approximately 150,000 tonnes of Spodumene is planned to be exported from the Mt Cattlin Lithium Tantalum Project, 2 kms north of Ravensthorpe in Western Australia. The project will employ around 75-100 people and inject $60 million to the local region.
"Spodumene product which we are seeking to ship from the Port of Esperance is a mixture of naturally occurring silicates and quartz, making it absolutely inert and non toxic," said Mr Tan. "The product is also insoluble and will be treated through wet screening to remove dust.
"Its end use will be powering environmentally friendly electric and hybrid cars. The rapid growth in demand for those vehicles, coupled with the potential world wide shortage of lithium, means Galaxy is well placed to enter the strong market for its product and deliver long-term regional benefits.
"We look forward to working with Esperance Port Authority and the local community in identifying a suitable export route for the Mt Cattlin Lithium Tantalum Project," he said.
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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