Hello again Ozblue With regards to the JV to build a 20 000...

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shadowboxer1

2,755 Posts.

23/07/16

12:39

Post #: 18344115
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Originally posted by ozblue ↑

SB, I don't think you understand that GLC have the backing of Tinci, one of their major shareholders, that they have been producing the lithium carbonate and hydroxide for. Tinci, or should I say their downstream companies, have put the price of the lithium products up by 350% between October last year and April this year with the excuse of building capacity.
GLC will use all of the 140,000t of spod concentrate.

The company PLS has already done some scoping level studies with GLC on building a conversion plant, where the cost is indeed over $200m for Poet Hedland, yet in Asia, they will be able to do it for around the $120m mark for the same sized plant. Hence why they are going to Asia, outside China, to build this plant and PLS will be contributing half the cost of about $60m.

Your statement of them only selling 70,000t is way off the mark, and factually wrong. GLC are expanding their operations as the lithium market is an expanding one. They are currently getting ore from Albermarle who have already told customers 'no more' from 2017, so they will probably be spending a lot of next year expanding their plant waiting for our initial exports towards the end of the year or early 2018.
You need to read the BOA announcement carefully to understand what is going on, and have a uni student that van read reports in Chinese from these different companies to know what is really going on.

Please stop saying that PLS are only selling 70,000t, as this is just wrong.

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Hello again Ozblue

With regards to the JV to build a 20 000 tonne lithium carbonate plant of which I referenced Tianqi purchase of Galaxy's 17 000 tonne plant for US$230 million and if this could be used as a benchmark of which you replied

"The company PLS has already done some scoping level studies with GLC on building a conversion plant, where the cost is indeed over $200m for Poet Hedland, yet in Asia, they will be able to do it for around the $120m mark for the same sized plant. Hence why they are going to Asia, outside China, to build this plant and PLS will be contributing half the cost of about $60m."

Since that time I came across Neometals feasibility study from a week early to build a 20 000 tonne lithium carbonate equivalent plant in Malaysia using a new technique of electrolysis which they believe has a cheaper Capex and Opex than conventional methods and still has a price tag of US$158 million +/- 15 % and 2.6 year pay back period.

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