Operator
Thank you. [Operator Instructions] Your first question comes from Andrew Bowler with Macquarie. Please go ahead.
SPOT PRICING, HOW PRICING IS SET, GLX SALES PLATFORM;
Andrew Bowler
Good morning, all. Thanks for that commentary around the provisional pricing adjustment.
That’s pretty handy.
But I guess, an extension of that, and for clarity’s sake, you talk about spot pricing in the range of US$550 to US$700 towards the end of the March quarter and the expectations that you receive that during the June quarter.
Just for clarity, is that sort of the range of expectations based on what you expect adjustments to end up in being July, August? Or is that sort of similar to the March quarter, where you get a sort of lower price during that quarter, and then it will be provisionally adjusted upwards later on?
Ken Brinsden
Yes, Andrew, good question. And actually just well to provide a little bit more clarity, we’ve already received sales contract and a vessel has sailed ...oh, sorry..
..It’s going to sail during the month of April that was priced at approximately US$655 a tonne, albeit that was a spot sale.
So in that particular case, contract price is set and vessel sales at that process.
To your point, those cargoes that we refer to, as being in that price range, are also based on the premise that they are provisionally priced.
So there will still be a subsequent final price to emerge at the time overview for final month of delivery, it may or may not be high, and that depending on what happens with lithium chemicals pricing in the intervening period.
But when we refer to that price range, we are referring to provisionally priced cargoes.
Andrew Bowler
All right. Fair enough. And I guess in terms of a market commentary question, there’s been comment from others, Aussie spot producers that there is demand for a sub-6% product at the moment, is it your observation.
And also, can you give any indication of contents of the concentrate grades you currently shipping?
Just a quick calculation all done based on assuming that your mine graded with your plant grade and inputting recovery on sort of getting it around about 12.5% concentrated grade produces that, is that roughly ballpark?
And is that what you’re expecting to ship?
Ken Brinsden
No, mic too low. So vessels shipped either 6% or higher, 5.9%, sort of 5.9%, 5.85%, sort of off that order.
In fact, daily average for the quarter was probably about 5.9%.
Yes, yes. So 5.9% lithia shipped average for the quarter, but it will float a bit ship to ship.
To your question about is there an appetite in the market for a lower-grade product? The answer is yes, because the market is moving towards lithia units, and as a result, people focus on lithia units more than they focus on grade. So stating it plainly, that’s one of the reasons why we’ve considered the GLX sales platform that we announced during the quarter. We see a big opportunity in the market that relates to cargoes being spot priced but potentially also lower-grade spot cargoes, still attracting a very, very strong price. So, we see a lot of leverage in being able to free up additional production that might be priced independent of an offtake agreement on the assumption that we have the cargoes available. So hence, the idea of establishing the sales platform.
Andrew Bowler
Fair enough. And the last one for me, I guess, carrying on from that last question, so, me commenting that sort of 5.5% is where I get you just with a rough calculation.
Can I assume from that, that there’s a bit of grade streaming happening?
Obviously, you’re mining more than your processing at the moment, so through a bit of grade streaming heading into the plant?
Ken Brinsden
We probably have to look at the calculations in more detail, mate. I’m not sure I can answer on the fly.
In terms of ore feed to the facility, it hasn’t actually been much in the way of stocked product, I wouldn’t have thought.
So maybe it’s a conversation we could take offline, Andrew.
Andrew Bowler
No, that’s my question.
Operator
Thank you. [Operator Instructions] Your next question comes from Stuart McKinnon from The West Australian. Please go ahead.
GALAXY/OROCOBRE MERGE A PRECEDENT? VERTICAL INTEGRATION ETC
DECISION ON POSCO DOWNSTREAM PROCESSING FACILITY TO BE THIS QUARTER ;
Stuart McKinnon
Good afternoon Ken and team. I just thought it would be good to get your observations on this week’s announcement about the Galaxy or [Orocobre]Cobra a[sic] merger.
I guess the obvious question is what does this mean, if anything, for Pilbara.
Do you guys feel the need?
Or does this give you sort of pause for thought in terms of your place in the lithium world?
I realize you’ve got a lot of capacity to grow into, but yes, just keen to get your thoughts and observations on that development.
Thanks, Ken.
Ken Brinsden
Yes. Good questions Stuart. The big themes in the industry indicate that people will try to continue to grow. I think scale is worth something in lithium raw materials and battery raw materials more generally. The reason that’s the case is because, pretty much, it’s still do with the scale of the counterparty that you’re dealing with downstream. So by that, I mean mainly the big battery makers and/or the big carmakers now who are the end user. So the industry is going to be looking to try and grow more scale on the raw material supply side that supports growth, therefore, having the balance sheet to support growth and investment. And I think that’s a trend that’s likely to continue in the industry.
How that relates to Pilbara Minerals, well, as you point out, we have a big portfolio of growth ahead of us, and we’ll have more to say about that in the coming weeks and months that, I think, is pretty handy and not a bad place to be growing from in the Pilbara Western Australia.
And the second order interest is in the vertical integration in the industry, so further participation downstream.
Clearly, the things like the POSCO deal fit that category, and we actively contemplate other things like that, that help support our deeper levels of vertical integration in the industry as we grow.
So yes, they’re all key themes. And I think that the outcome with respect to Galaxy and/or Cobra is kind of a natural fit in that regard.
Stuart McKinnon
And Ken, just finally, make some, how soon do you expect to make a decision on the POSCO downstream processing facility?
Ken Brinsden Well, based on recent conversations with POSCO, we expect to have that basically flushed out during the current quarter, Stuart.
Stuart McKinnon
Great. Thanks, Ken.
Ken Brinsden
Thank you.
Operator
Thank you. Your next question comes from Al Harvey from JPMorgan. Please go ahead. ALTURA TRIALS, PROVISIONAL PRICING, TANTALITE;
Al Harvey
Good afternoon, Ken.
Just wanting to get a little bit more info on the trial parcel from the Altura pit that you ran through Plant 1, sort of how much tonnes did you run through?
And is there any possibility of sending more out to your pit material for your plant to keep for with the ramp-up back at Pilgangoora?
Is it all pretty much filled up by that?
Ken Brinsden
Yes. We love the flexibility that comes out of access to the old Altura pit, by the way, now known as the South Pit.
So yes, the South Pit over time will become another important source for all, and it could be a Plant 1 that equally could be Plant 2.
With respect to the trial, I’ll hand over to Dale, and he can backfill a few more details, but really happy with the outcome.
Dale Henderson
Yes, sure. Yes, Al, it was a fairly small parcel around [indiscernible] tonnes, which is long enough to really test it but not really long enough to really understand variability too much.
So yes, we’re happy with the performance, but we’ve intentionally not disclosed the details around that because, yes, in the scheme of things, quite, quite small.
And there was opportunity in what we did here was this was broken stocks, which has been left over in the pit. We thought we should take that opportunity to run it through our plant and trial at our reagent rates are even the third year, really pleased to report how that performed.
Ken Brinsden Yes. Al, materially higher recoveries than that that always we’d be able to be achieved within the old Altura plant. And by that, I mean a massive step-up.
And we think that, that’s further evidence or what we originally believed, and that was that we were on to the right flotation solution at our Pilgangoora facility.
And now having tested it on Altura’s ore, we’d say, yes, that was spot on and gives us a lot of confidence about where we head with respect to plant two as we consider the modifications there.
Al Harvey
Right. And maybe just back to the provisionally priced contracts. What sort of proportion of sales are on these contracts? And are all the contracts being renewed to these new terms? Or is there some that still have a bit longer to run? And maybe just a bit of extra detail there.
Ken Brinsden I extended the contracts now on that model. Also – so by far, the majority. And let’s hope it becomes 100% over time, but more work to be done with some customers.
Al Harvey
Right. And just one last one.
Just sort of tantalite sales were up a bit this quarter.
Anything that drove that?
And if you’ve got a guide on the price you’re receiving for that, that would be helpful.
Ken Brinsden
Yes. We’re at the sort of whim of the sales – or basically, the demand arising from GAM as it relates to the Greenbushes blending facility.
It just so happened that they took quite a few trucks during the March quarter.
In respect to price, the headline price for tantalite has been in the range of sort of $60 to $64 a tonne, sort of, of that order – sorry, per pound, $60 to $64 per pound.
We received a proportion of that because of the effect of a primary concentrate versus the final concentrate.
So to refresh your memory, tantalite is priced at a headline concentrate grade, sort of nominally 25% to 30% tantalite.
We typically ship between about 5% and 10% primary grade tantalite.
So as a result, we received a proportion of the headline price.
Yes. So actually, pricing hasn’t really moved much.
The industry took a hit in the early stages of COVID this time last year, bounced back a little bit during the course of calendar year 2020, and it’s pretty much stayed in that range I described since.
So not too much action in the tantalite world.
Al Harvey
Yes. No worries. Thanks very much guys.
Operator
Thank you. Your next question comes from Harsh Bardia from Citi. Please go ahead.
GLX, POSCO TIMELINE ETC
Harsh Bardia
Hi, Ken and team. Thanks for the opportunity.
Just a couple of questions. First one on GLX digital platform. Is there any target in terms of volume near term, longer term to run through this platform? I mean, and what’s the slack in the system after uptake? I’ll come back with the second one.
Ken Brinsden
Okay. Might, yes. So GLX had a bit more setup work to be completed. In fact, I believe that, that’s now largely done. So now it’s under review from our point of view.
And the question becomes having the cargo available to go on the platform just to start the process.
Now that’s still a work in progress, but we will have – again, we’ll have more to say about that in the coming weeks as to when and how much gets placed on the platform.
Nonetheless, absolutely, our intention that we take advantage of that platform to the extent that we can.
As I alluded to earlier, there is tension in the market, and there is a fundamental shortage of spodumene supply, in which case, we feel like we should be able to attract a higher price as a result of sales, well, via that platform because it’s a slick system for the purpose of conducting a spot sale.
But even if it was a spot sale in any case, like by tender or closed tender, we’d say it still probably get a higher price than your contracted terms today. So yes, we’re motivated to get product on there but subject to more work.
Harsh Bardia
Okay. And on POSCO downstream plant, I know there are some confidential terms. But any indication on the timeline and CapEx guidance from POSCO?
Ken Brinsden Well, we hear from POSCO that they’re very keen to start a construction cycle as soon as possible. They were reasonably explicit in the disclosures, indicating that they thought the facility could be commissioned during 2024, or commencement of commissioning during 2024.
Now, from our point of view, we have to finish more work on the information that’s been provided by POSCO so it’s difficult for us to be explicit, any more explicit than what they’ve said in the public domain.
And, then just that general comment that, we really value the relationship with POSCO.
We like the organization, the work that they’ve done to position themselves in battery raw materials, and that ultimately, we think that would be a good partner for Pilbara Minerals, but we do have more work to do to finalize that position.
Harsh Bardia
Okay, thanks Ken.
Just one quick clarification, maybe Brian, shipment guidance for June quarter 75 to 90,000 tonnes.
I believe that includes 11,500 tonnes from March quarter. Is that right?
Brian Lynn Yes, Harsh Bardia that is correct, So that 11,500 will be recorded as shipped in the June quarter.
Harsh Bardia
Okay. Thanks. That’s all from me. I’ll pass it on. Thanks.
Operator
Thank you. [Operator Instructions] Your next question comes from JackGabb from Bank of America. Please go ahead.
PLANT TWO RESTART TIMING, IMPROVEMENTS
JackGabb
Thanks and hi all. Just real quick one for me, firstly just on the Plant two potential restart, you still thinking of that in a staged manner? Or can the market support so the full 200,000 tonne per annum run rate?
I’ll leave it there and then come back to the next question.
Ken Brinsden
Yes, it’s a good question, Jack and I think the answer is still reasonably clear, because of the work that, that has to be undertaken at the plant. And some of it involves longer lead items. It will be a staged restart. That seems reasonably clear.
Now, practically speaking, I think that’s what that’s, what we’re being driven towards as a function of engineering solutions.
But there is also that point that you made about the market and ultimately managing people what combination of people’s expectations as to what might be available in the short, medium and the long-term.
So I think the answer is a staged rollout, but not over a huge period of time.
Further definition will be provided in the coming weeks.
JackGabb
Thanks. And I just wanted to dig in a little bit more about – in the potential to produce I guess, a slightly lower-grade con, whether it be for all of your concentrate, or just a portion of it.
Have you given any thought as to potentially knock on impacts on recoveries and costs?
Or should I sort of assume benchmark type improvements that we’ve seen from other minerals or from galaxy? Thanks.
Ken Brinsden
Yes, Jack, the line of inquiry that you’re exploring there, it’s very much part of our thinking, as it relates to the plant improvement project. We in fact, are investing in facilities that assist in splitting up product basically, at the back end of our flotation plant, in which guys, we’ve got better, better operability. And in particular, as it relates to splitting grade.
So it’s very much part of our thinking.
But the end result as to what actually driven from that remains to the subject of more engineering and more assessment.
But as a general trend, we would say, as of course, every other lithium miner I would say, if you produce lower grade product, even as a subset of your production sorry, it will inevitably lead to higher recovery and lower cost.
JackGabb
Yes, absolutely.
And then just last one, I think you guys have talked previously about investigating, potentials intermediate-type products. And I guess the lithium market is relatively new in that respect. We all focus on hydroxide for spodumene, but I’m just curious if there’s been any developments, as you look to, I guess, to achieve a little bit more value before going all the way to hydroxide. Thanks.
Ken Brinsden
Yes, there’s more people talking about it, isn’t there, the potential for sort of midstream product suite.
And that is something that we do consider. We think there’s plenty of room for innovation in the lithium raw material supply chain.
I mean, as much as Greenbushes, has been around for 25 years and exporting spodumene to China, it doesn’t necessarily mean that it’s the right solution for the industry in the medium and the long-term.
So we’re motivated to explore all the alternatives, and make sure that we maximize the value in what we think is a fantastic resource at Pilgangoora. And especially given the mine life at Pilgangoora, an asset that’s going to be around for 20, 30, as 40 years so. So with that as a backdrop, we think it’s important that we fully explore all of those options.
We’ll have more to say about that, that stream of thought and midstream sort of strategies again in the coming weeks and months.
JackGabb
Great, thanks very much. That’s all from me.
Operator
Thank you. There are no further questions at this time. I will now hand back to Ken for closing remarks.
Ken Brinsden
Thanks, Amanda. Thanks, everyone, for your participation, as always welcome a call or an email amongst the team here.
If there’s more information to be followed up posts the quarterly or any other interested parties.
So thanks everyone, for your participation, and we’ll speak to you soon.
Good afternoon.
(20min delay)