Global lithium company Galaxy Resources and its partner on the Mt Cattlin project, General Mining, have announced the forward sale of 60,000 tonnes of lithium concentrate from the Mt Cattin project in Ravensthorpe, WA, to two China-based byers.
Galaxy said the two customers will pay a total of US$36 million for the lithium concentrate (US$600 per tonne), with half of the total amount (US$18 million) to be paid as prepayment on or before 31 March 2016.
“This sale of 60,000 tonnes of lithium concentrate has been targeted at converters in the lithium carbonate and lithium hydroxide market,” Galaxy said in a statement, adding that the maiden shipment will occur in July/August 2016.
“it is intended that the balance of any additional and future production will be sold to a range of downstream converters, including lithium carbonate, lithium hydroxide and cathode markets.”
Additionally, Galaxy and General Mining have also agreed to deliver 120,000 tonnes of lithium concentrate in 2017 to the same Chinese customers at a sale price which is to be agreed during the fourth quarter of 2016, based upon prevailing market conditions at that time.
“We expect to continue to see strong growth in end used demand form a diverse range of end and user applications, and coupled with an ongoing limited repose on the supply side for the near term, lithium feedstock will remain in very high demand, and as such pricing will also continue to be very robust going into 2017.”