Perth, June 9, 2009 (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) today announced it has secured key supplies of sulphuric acid and caustic soda for its proposed lithium carbonate plant in Jiangsu Province, China.
The Company signed a Letter of Intent (LOI) with site neighbour, Two Lions (Zhangjiagang) Fine Chemicals Co., Ltd. (Two Lions) to supply 38,000 tonnes of sulphuric acid per annum for 15 years. The supply arrangement also includes a quantity of sodium hydroxide and steam, as well as access to state of the art wharf unloading facilities.
Two Lions is based in the Yangtze River International Chemical Industrial Park, next door to the proposed site for Galaxy's lithium carbonate plant. Two Lions was founded in 2003 and is a large scale chemical enterprise, predominantly engaged in producing basic chemicals raw materials.
The company has an international solid and liquid berth with the capacity of berthing 70,000DWT dry bulk vessels and 65,000DWT liquid chemical vessels respectively, and 5 chemical barge terminals with the capacity of berthing 1000DWT each.
Managing Director, Iggy Tan said the agreement with Two Lions meant that Galaxy had now locked in key consumable supply and unloading access for its lithium carbonate plant in China.
"Having signed an agreement with Jiangsu Huachang Chemical Co. last week for the supply of soda ash for our lithium carbonate plant, we now have all the required consumable supplies in place," said Mr Tan. "In addition, having access to Two Lions wharf unloading facilities is a key advantage of the plant location."
About Galaxy Resources Limited
Galaxy Resources (ASX: GXY) is an emerging mining and chemical company focusing on lithium and tantalum production. Galaxy is at an advanced stage of developing its Mt Cattlin Lithium Project (hard rock spodumene) in Ravensthorpe, Western Australia. The Project encompasses a mine and minerals plant which will produce 137,000 tpa of 6% Li2O spodumene concentrate. Galaxy intends to add value to the Mt Cattlin Project by establishing its own downstream lithium processing facilities in China.
The Company is finalising plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate.
Contact
Iggy Tan Managing Director Tel: +61-8-9215-1700 Mob: +61-419-046-397
Galaxy Resources Limited
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