Galaxy secures lithium sales

GALAXY Resources has signed contracts to sell 120,000 tonnes of lithium concentrate from its Mount Cattlin project to its existing Chinese buyers for a minimum price of $US830 per tonne.

Galaxy secures lithium sales Galaxy secures lithium sales Galaxy secures lithium sales Galaxy secures lithium sales Galaxy secures lithium sales

The buyers, mostly Chinese chemical converters, have agreed to pay an additional $15/t for every 0.1% improvement in grade of lithium oxide delivered – meaning the price for a 6% lithium concentrate would be up to $905/t.

Galaxy expects to produce up to 160,000 tonnes of lithium concentrate from the facility, near the Western Australian town of Ravensthorpe, after it started mining this week.

Galaxy says the cost of production from Mount Cattlin is roughly $US375 per tonne at this stage, with the group expecting to reduce costs to about $300/tonne once production is established. 

Production at this level would satisfy contracted volumes from 2016 and for 2017, Galaxy said, adding that it was bas...