Galaxy Resources has achieved mechanical completion at its Jiangsu lithium carbonate plant a month ahead of its revised schedule and will begin production early next year, according to a statement released today.
The company said it received construction completion certificates with associated exceptions and punch lists from EPCM contractor Hatch Engineering.
The project was originally slated for completion at the end of quarter two, 2011, however was revised to the end of quarter four following labour shortages in the Jiangsu region.
The shortages also resulted in a cost blow out to $99.8 million for the plant, up from a previous estimate of $72.5 million.
The company said the construction effort at Jiangsu had accelerated and the mechanical completion was an important milestone.
Galaxy resources managing director Iggy Tan said the construction force was in the process of being demobilised with only a skeleton crew to remain on site to complete the exceptions and final punch list items.
“Galaxy is processing applications for final production approvals and licenses with relevant government departments and is targeting first production during the first quarter of 2012,” Mr Tan said.
