JOHANNESBURG (miningweekly.com) – Lithium miner Galaxy Resources has signed binding offtake agreements for 200 000 t/y of lithium concentrate from its Mt Cattlin operation and said on Wednesday that 100% of the planned output from the mine in Ravensthorpe, Western Australia, had now been sold on a five-year contract term.
The offtake contracts were executed with multiple customers throughout Asia. The offtake partners are producers of lithium carbonate and lithium hydroxide monohydrate.
Pricing is either on a cost-plus insurance and freight or cost-plus freight basis and will be subject to a yearly pricing review between Galaxy and its customers in the fourth quarter of each calendar year.
MD Anthony Tse said that Galaxy had seen a “very strong” interest from a wide range of current and new buyers after Mt Cattlin’s consistent production in 2017.
The company has agreed that a portion of Mt Cattlin’s lithium concentrate sold under the offtake agreements be converted on its behalf to lithium carbonate and lithium hydroxide. This will allow Galaxy to sell its own lithium chemical production to the end-user market, which is exhibiting robust demand.