Galaxy Resources will temporarily halt operations at its Mt Cattlin lithium mine project in Western Australia after citing high inventory levels of spodumene.
The build-up of internal spodumene inventory levels amounts to 12-months supply of feedstock for the Jiangsu Lithium Carbonate Plant.
The temporary halt will be initiated by end-July and is expected to reduce spodumene stocks to more manageable levels.
Galaxy Resources managing director Iggy Tan said: "The Jiangsu Lithium Carbonate Plant is three months into a 12-month ramp-up; resulting in an internal inventory imbalance.
"A pause in operations at Mt Cattlin is the best, and most financially prudent way to address this imbalance and difference in start-up profiles of these operations."
The temporary halt will reduce cash outlay by A$4m ($4.06m) per month, while the onsite mining contractor will be demobilised.
The company said that the Jiangsu ramp was progressing ahead of schedule, with a feed rate at 60% of design and increasing. Ramp-up of operations at Jiangsu will take a year to complete.