Galaxy Resources Limited (ASX:GXY) Achieves Mechanical Completion at Jiangsu Project
Perth, Dec 6, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) is pleased to announce it has achieved mechanical completion of its wholly-owned Jiangsu Lithium Carbonate Project (Jiangsu or the Project) in China, a month ahead of the revised schedule.
The Company received Construction Completion Certificates with associated exceptions and punch lists for all areas of the plant from EPCM contractor, Hatch Engineering.
Galaxy said the construction effort at Jiangsu had been accelerated and the mechanical completion, ahead of schedule, was a very important milestone. Under a revised project schedule, announced July 2011, Galaxy had targeted completion by the end of Q4 2011.
The Company said Project costs were expected to close in line with previous budget estimates.
Galaxy Resources Managing Director, Iggy Tan said: "The large construction workforce is in the process of being demobilised, with only a skeleton crew to remain on site to complete the exceptions and final punch list items. The majority of the Hatch EPCM personnel have also been de-mobilised.
"Galaxy is processing applications for final production approvals and licenses with relevant government departments and is targeting first production during first quarter of 2012," Mr Tan said. Significantly, the Company had also commenced cold commissioning, which it said would take approximately two months.
Cold commissioning involves checking and ensuring the integrity of plant, equipment, electrical, instrumental and control systems. Once it is completed, hot commissioning of the plant and equipment will commence, followed by the introduction of process materials and the start-up phase.
Galaxy said some parts of the plant, like the packaging and microniser units, had already been cold commissioned ahead of schedule. These units have been handed over to Galaxy operation ready for the final stage of commissioning and start-up.
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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