Huachang Soda Ash plant in the industrial complex
Perth, June 4, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has secured a key supply of soda ash for its proposed lithium carbonate plant in Jiangsu Province, China. The Company has signed a Letter of Intent (LOI) with the Jiangsu Huachang Chemical Co. Limited (SHE:002274) to supply 40,000 tonnes of soda ash (Na2CO3) per annum for 15 years.
Huachang is based in the Yangtze River International Chemical Industrial Park, close to Galaxy's proposed site for its lithium carbonate plant. Huachang is a core enterprise of Jiangsu Huachang Group Limited and is mainly involved in the manufacture of basic chemicals, fine chemicals and bio-chemicals.
Huachang has been operating for more than 30 years and is a major supplier of chemicals producing 300,000 tonnes of soda ash, 150,000 tonnes of synthetic ammonia, 300,000 tonnes of ammonium chloride and 300,000 tonnes of compound fertilizer annually.
Managing Director, Iggy Tan said that soda ash supply is one of the key consumables for the lithium carbonate process and the Huachang supply agreement provides access to good quality soda ash.
"Huachang is in close proximity to the proposed site of our lithium carbonate plant, reinforcing the strategic significance of securing the site within the Yangtze River International Chemical Industrial Park."
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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