Galaxy Resources inks 4-year offtake deal with Mitsubishi Corp

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Image credit: Galaxy Resources website

Galaxy Resources and General Mining Corporation have announced that they have signed a sales and distribution agreement with Mitsubishi Corporation for the mothballed Mt Cattlin mine in Western Australia.

Image credit: Galaxy Resources website
Image credit: Galaxy Resources website

Under the terms of the agreement, Mitsubishi will be the principal buyer of the spodumene concentrate produced from the mine.

Mitsubishi will sell up to 100% of the spodumene concentrate to China, South Korea, Taiwan and Vietnam.

“Mitsubishi is one of the largest traders of lithium products in the world, spanning the entire value chain. This agreement marks a major milestone being achieved in the run-up to the recommencement of production at Mt Cattlin by the end of March 2016,” Galaxy said in an ASX Announcement.

“With Mitsubishi’s top tier status as an international trading house with specialist knowledge of the lithium supply chain, it represents an important recognition of the Mt Cattlin Project as a high quality source of near term lithium supply to the market.”

The Cattlin mine was mothballed in 2012 by Galaxy Resources.

General Mining acquired the rights to operate the resource for $7.5 million in February this year. The two companies have split ownership of the mine.