Galaxy breathes new life into Ravensthorpe
Wednesday, 11 November 2009

WHEN starting work on a new mine, especially after BHP Billiton pulled the carpet from beneath the feet of the local community, a company needs an ambitious project - and a big ground breaking ceremony. By Wally Graham.
By 2010 Galaxy Resources expects its Mt Cattlin mine, located at BHP Nickel West’s former spiritual home of Ravensthorpe, will be the world’s second-largest hard rock producer of spodumene.

Galaxy is confident of also becoming the largest and lowest-cost producer of lithium carbonate in the Asia-Pacific region.

The Mt Cattlin project will produce 137,000 tonnes of spodumene concentrate per annum at an onsite processing facility.

This concentrate will then be shipped to the company’s own value-adding lithium carbonate plant in China.

From the China facility Galaxy will produce 17,000 tonnes per annum of battery grade lithium carbonate.

A large proportion of this will make its way into the burgeoning China market as well as the growing markets of Japan, Korea and Europe.

Last week, Galaxy celebrated the ground breaking of the Mt Cattlin mine in style, as managing director Iggy Tan joined Western Australian Premier Colin Barnett and the chief executive of Chinese investor company Creat, Ren Xiajian, in driving the ceremonial shovel into the ground.

“We’re very proud to be opening this mine,” Tan told gathered media.

“In the next week or so we will commence construction. We have all the environmental approvals, and yesterday [Thursday] we announced the final mining approval.

“So we are very excited to have this mine commence construction. We hope it will be running by this time next year.”

Tan said the mine hoped to employ around 75 permanent workers.

The company is adamant that the employees will be residential as it believes a residential workforce will benefit the region.

Responding to the question of how Galaxy could guarantee its mine would not go down the same path as the BHP mine, Tan said he could not provide such a guarantee but did say the Mt Cattlin mine had a 15-year mine life with potential to extend.

Lithium is used extensively in lithium-ion batteries that operate the world’s laptops, mobile phones and power tools, but it is increasingly being used in the hybrid and electric vehicle market.

“We think there is a bright future for the product we are going to produce,” Tan said.

“Our [spodumene] concentrate will be shipped to China where we will own a downstream processing facility ... adding to the value of the Western Australian resource by producing that into more valuable products.

“The lithium carbonate is eventually produced in China and is used in the lithium-ion battery industry in the Asian countries of China, Korea and Japan.

“We will be a significant player in the lithium game.”

The ceremony was also a big moment for Colin Barnett as it provided the perfect platform for him to bring some good news to the Ravensthorpe region.

Barnett highlighted his government’s participation in the mine’s progress by dealing with works approval within agreed timeframes.

He said this allowed the mine to go ahead as quickly as possible, which would be beneficial to the people of the region.

He commented that not only would there be 75 employees once the mine was operational but there would also be around 100 jobs during the mine construction.

“This year has been a very tumultuous year for Ravensthorpe,” Barnett said.

“At the beginning of the year we had the shock news when BHP closed the major nickel project, which it had only just started, and there was a loss of hundreds of jobs.

“To the great credit of the Ravensthorpe community they have kept going and, indeed, the year is ending on a far more optimistic note.

“I’m delighted to be here today with Galaxy Resources for the ground breaking for a new mine, a lithium mine.

“I wish the project well and I know there is a great sense of excitement and optimism that has returned to Ravensthorpe, and it is some good news and a happy end to the year for what was a pretty difficult start to the year for Ravensthorpe.”