Highlights
Three-year agreement signed with
Offtake for a minimum 60,000 dmt per annum (total 180,000 dmt) of spodumene concentrate from Mt Cattlin
Chengxin's lithium chemicals plant currently produces 30ktpa and construction is underway to increase production capacity to 40ktpa by late 2020
Agreement demonstrates customer recognition that Mt Cattlin is a reliable source of high quality spodumene product that is established in major lithium supply chains globally
Chengxin has agreed to purchase 60,000 dmt (+/- 10%) of 6% Li2O spodumene concentrate from Mt Cattlin in each year, 2021, 2022 and 2023. Pricing for spodumene shipments will be on a spot cargo basis for 2021 moving to a market-based pricing formula for the remaining two years. Shipments will be on a CIF (Cost, Insurance and Freight) basis.
Galaxy also advises that the offtake agreement with
This new arrangement with Chengxin supplements Galaxy's existing long term spodumene concentrate offtake agreements with:
Due to current soft market conditions, Galaxy's near-term sales volumes and shipping schedules will be largely dictated by the spot price that Galaxy is willing to accept and the pace customers are able to destock their inventory levels. Mt Cattlin's current final product inventory levels plus forecast production for Q4 2020 are sufficient to meet customer requirements for this quarter.
Contact:
Tel: +61 (8) 9215 1700
Email: info@gxy.com
About
About Chengxin Lithium
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