Perth based Galaxy Resources has taken steps to expand its lithium business from mineral exporter to battery chemical producer, announcing yesterday that it has plans to invest in a lithium processing facility in China.
The debt-free miner has been reviewing various opportunities since its balance sheet was strengthened in February with the sale of tenements to Korean POSCO for the price of US$280 million.
The company has decided to process their spodumene concentrate in China as opposed to WA in China due to the limited mine life expected at the Mount Cattlin site. The cost of building the refinery in China is far less than in Australia, with Galaxy estimating their 40% stake in a 25 000 tonnes per annum lithium refinery will cost about US$60 million.
The company is also looking at other opportunities to substitute their limited mines through alliances with smaller lithium producers, however, Managing Director – Mr Rowley has confirmed that nothing has been agreed to yet.
“If Alliance turns out the way we want, there is a possibility of some merger or something … we haven’t thought about it yet and we still have a lot of work to do.”
