10/02/2010 - 11:23

Galaxy secures long-term shipping deal

10/02/2010 - 11:23

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Shares in Galaxy Resources were higher after the company finalised a long-term shipping contract for the transport of spodumene concentrate from the Esperance port to China.

Shares in Galaxy Resources were higher after the company finalised a long-term shipping contract for the transport of spodumene concentrate from the Esperance port to China.

The WA company said the contract with Hong Kong based Pacific Basin Shipping provided a five-year fixed price arrangement to ship the concentrate produced at the Mt Cattlin mine to Jiangsu Province.

Galaxy managing director Iggy Tan said the contract delivered both cost efficiencies and long-term security for customers and shareholders.

"We are very pleased to fix an important variable component of our costs for the next five years," he said.

"The ocean freight rates agreed with Pacific Basin are attractive and below our definitive feasibility study expectations."

Mt Cattlin is due to start operations by the end of the year.

Shares in Galaxy climbed eight cents to $1.145 at 14:02 AEDT.

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