You would hope nothing has gone wrong in the processing plant.
As per below it is critical if GMM is to maintain its 50% stake.
General Mining Corporation and Galaxy Resources are eyeing off-take contracts next month as the revamped Mt Cattlin spodumene and tantalum mine near Ravensthorpe gathers momentum.
The Michael Fotios-led General Mining yesterday revealed it had met the December 31 deadline to spend $7 million towards a restart.
It was the first milestone in a $25 million deal to acquire a 50 per cent stake alongside Galaxy Resources, which operated Mt Cattlin between 2009 and 2012.
To maintain its half share of future operating cash flows, General Mining mustrestart production at the Mt Cattlin plant by March31.
Galaxy will also receive $6 million a year for the first three years after production resumes.
In a statement to the Australian Securities Exchange yesterday, General Mining said lithium carbonate prices have risen substantially over the past year and anecdotal evidence suggested the supply of spodumene concentrate into mainland China will continue tightening.
“It is anticipated that at current lithium carbonate prices, the price of spodumene concentrate will be higher in 2016 than General Mining’s quoted 2015 price of $US445 per tonne,” the company said.
“Given this constrained supply, General Mining is working closely with both Mitsubishi Corporation and Mt Cattlin partner Galaxy Resources on binding spodumene concentrate sales and the company expects to be able to further update the market on spodumene off-take contracts by the end of February.”
All long lead items required for the restart were ordered last month, with commissioning of the fines circuit expected in late March.
Mining is scheduled to begin in April, with throughput of at least 800,000 tonnes a year.
The coarse circuit should be commissioned in late June and General Mining expects to export first concentrate in July.
Mt Cattlin has historically produced more than 100,000 tonnes of spodumene concentrate, previously shipped from Bunbury.
General Mining has been in discussions to truck concentrate to Esperance for shipment in bulk.
Mr Fotios controls about 18 per cent of General Mining shares.
GMM Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held
