11/02/2010 - 10:47

Galaxy up 10% on Chinese approvals

11/02/2010 - 10:47

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Shares in emerging lithium producer Galaxy Resourecs have climbed almost 10 per cent after announcing it received the project approval and business licence for its China lithium carbonate plant in Jiangsu province.

Shares in emerging lithium producer Galaxy Resourecs have climbed almost 10 per cent after announcing it received the project approval and business licence for its China lithium carbonate plant in Jiangsu province.

The company said both approvals represent the final key milestones for the its lithium carbonate plant development.

Galaxy managing director, Iggy Tan said while the business licence was granted 10 days behind the stated schedule, the minor delay will not impact the overall project schedule ensuring Galaxy is still on track to have the lithium carbonate plant commissioned during Q4 2010.

"Our excellent relationship with the Zhangjiagang Free Trade Zone (ZFTZ) authorities and the project approval management expertise of Hatch China are some of the key reasons for the timely issue of the Business Licence," Mr Tan said.

"The approval process is not delaying work on the site, as preparation works for the plant are already well underway.

"Galaxy has been granted permission from the ZFTZ authorities to commence the plant foundation piling at the end of February in time for the construction in April 2010," he said.

Galaxy was up 11 cents, or 9.37 per cent, to $1.24 at 1345AEST.

 

Full announcement below:

PROJECT APPROVAL AND BUSINESS LICENCE RECEIVED FOR CHINA PLANT

Highlights
 Project Approval and Business Licence received for China Lithium Carbonate Plant
 Final critical milestone now achieved for China approvals
 Lithium Carbonate Project is on track for start up in Q4, 2010

Emerging lithium producer, Galaxy Resources Limited (ASX: GXY), is pleased to announce it has received the Project Approval and Business Licence for its China Lithium Carbonate Plant in Jiangsu Province.

Both approvals were granted by the Jiangsu Province Administration Bureau for Industry and Commerce and represent the final key milestones for the Company's Lithium Carbonate plant development.

Galaxy Resources Managing Director, Mr Iggy Tan, said that the Company had met all of the important milestones for the Jiangsu approval process in a timely manner. While the Business Licence was granted 10 days behind our stated schedule, the minor delay will not impact the overall project schedule ensuring Galaxy is still on track to have the Lithium Carbonate Plant commissioned during Q4 2010.

"The Company is very proud of the overall timeframe it has achieved in receiving the Business Licence for Galaxy's wholly owned foreign Chinese subsidiary company," Mr Tan said.

"Our excellent relationship with the Zhangjiagang Free Trade Zone (ZFTZ) authorities and the project approval management expertise of Hatch China are some of the key reasons for the timely issue of the Business Licence.

"The approval process is not delaying work on the site, as preparation works for the Plant are already well underway.

"Galaxy has been granted permission from the ZFTZ authorities to commence the plant foundation piling at the end of February in time for the construction in April 2010," he said.

A ceremony will be conducted at the Zhangjiagang site, Jiangsu Province on February 21 to bless the site and to officially mark the commencement of the Lithium Carbonate Project.

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