Galaxy Resources to halt operations at Mt Cattlin project in Australia

15 July 2012 (Last Updated July 15th, 2012 18:30)

Galaxy Resources will temporarily halt operations at its Mt Cattlin lithium mine project in Western Australia after citing high inventory levels of spodumene.

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.

“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 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.