Galaxy entered multiyear offtake agreement with new customer Sichuan Chengtun Lithium. Credit: Galaxy Resources Limited.

Mining company Galaxy Resources has signed a three-year offtake agreement with Sichuan Chengtun Lithium, a wholly-owned subsidiary of Chengxin Lithium Group.

The Chinese lithium producer will purchase a minimum of 60,000 dry metric tonnes (dmt) of spodumene concentrate per annum from Galaxy’s Mt Cattlin mine.

The Mt Cattlin spodumene mine is located two kilometres north of the Ravensthorpe town in Western Australia.

The commencement of the offtake will take effect from next year and will continue through 2023.

Galaxy has ended its contract with Yi Chun Yin Li Energy and is now allocating that tonnage to the new offtake agreement with Sichuan Chengtun.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Galaxy Resources CEO Simon Hay stated: “We are pleased to welcome Chengxin as a new major offtake partner, further diversifying and strengthening Galaxy’s customer base to support Mt Cattlin’s operations. Chengxin also has expansion plans underway to increase production capacity in preparation for the impending lithium demand surge in the medium to long term.

“The drawdown of inventory combined with strong customer indications for demand in 2021 has also led Galaxy to examine the potential ramp up of Mt Cattlin back to full rate in 2021, although there will need to be sustained price increases for us to commit to the return of higher production levels.”

Galaxy has existing offtake agreements for Mt Cattlin’s spodumene concentrate with Yahua for 120,000t and Meiwa for 55,000t.

Mount Cattlin produced 1.79m wet tonnes of ore in 2019, refined into 191,569 dry tonnes of lithium concentrate. Of this, 43,222 was produced in Q4 2019, near the top end of estimates.

In January, Galaxy Resources released its Q4 2019 results, showing plans to reduce lithium mining by 60% in 2020.