Lithium company Galaxy Resources has executed long-term offtake contracts with multiple customers in Asia.
Galaxy, which produces lithium from the Mt Cattlin operation near Ravensthorpe in Western Australia, has agreed to sell 100 per cent of the planned output from the mine for five years from 2018.
The company described the Asian customers as leading and reliable producers of lithium carbonate and lithium hydroxide monohydrate. It added that they are all key suppliers of lithium products and materials throughout Asia.
Galaxy said pricing for the contracts would be based on either a cost plus insurance and freight (CIF) or cost plus freight (CFR) basis and involve an annual pricing review with its customers during the fourth quarter of each year.
Anthony Tse, Galaxy managing director, said the company had experienced strong interest from current and new buyers after the consistent quality and delivery of production from Mt Cattlin throughout 2017, with it seeing increasing demand over the five-year contract term.
“The Mt Cattlin team will be working on a number of initiatives through the first half of 2018, to provide its customers with the increasing volume and consistent quality of product they require as they continue to expand their own operations,” Tse said.
“These agreements also underscore the strong relationship Galaxy has with its customers and consolidates long-term partnerships with a number of the larger and high-quality chemical converters in Asia, who are in turn suppliers into the fast-growing lithium battery materials sector in that market.”
Galaxy has also agreed for a portion of the Mt Cattlin lithium concentrate sold under the offtake agreements to be converted into lithium carbonate and lithium hydroxide. It expects to confirm these agreements in early 2018.