Galaxy Resources to cut lithium production at Mt Cattlin mine
2019-10-25 15:06:34 [Print]
Australian-based Galaxy Resources Ltd. said on Thursday it will scale back operations at its Mt Cattlin mine, as the sector faces pressure from weak pricing and lower than expected demand from China.
Galaxy Resources stated that it is reviewing operations at Mt Cattlin, its most important mine, and expected to reduce the amount of material mined by about 40%.
The U.S.-China trade dispute and weaker than expected growth in China has hurt the overall economic outlook and short-term sentiment in the electric vehicle and lithium-ion battery market, the miner said.
In June, China cut electric vehicle subsidies, having raised the standards for new energy vehicles that qualify for subsidies and reduced the amount provided.
Galaxy Resources trimmed the upper end of full year production guidance to as much as 193,000 dry metric tonnes of lithium concentrate, down from a previous upper limit of 210,000 dmt.
During the quarter ended Sept. 30, the miner shipped a total of 58,278 dmt of lithium concentrate, against 29,439 dmt in the preceding quarter.
Despite the current pricing pressure, Galaxy Resources said it was confident in the long-term outlook, with support expected from growth in electric vehicle markets and higher penetration of lithium-ion batteries for electrified energy storage.
Galaxy Resources stated that it is reviewing operations at Mt Cattlin, its most important mine, and expected to reduce the amount of material mined by about 40%.
The U.S.-China trade dispute and weaker than expected growth in China has hurt the overall economic outlook and short-term sentiment in the electric vehicle and lithium-ion battery market, the miner said.
In June, China cut electric vehicle subsidies, having raised the standards for new energy vehicles that qualify for subsidies and reduced the amount provided.
Galaxy Resources trimmed the upper end of full year production guidance to as much as 193,000 dry metric tonnes of lithium concentrate, down from a previous upper limit of 210,000 dmt.
During the quarter ended Sept. 30, the miner shipped a total of 58,278 dmt of lithium concentrate, against 29,439 dmt in the preceding quarter.
Despite the current pricing pressure, Galaxy Resources said it was confident in the long-term outlook, with support expected from growth in electric vehicle markets and higher penetration of lithium-ion batteries for electrified energy storage.
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