Shares in Creat Resources Holdings Ltd (LON:CRHL) were boosted this morning by news that Galaxy Resources Ltd (ASX:GXY), in which Creat has a 19.99 percent stake, has started lithium concentrate (spodumene) production at Mt Cattlin in Ravensthorpe, Western Australia.
Creat was trading up 35 percent in early London deals.
The production start-up is on schedule and follows the successful commissioning of the crushing circuit and heavy media plant. Over the coming weeks, spodumene throughput will be progressively ramped up until the design capacity is reached on a continuous basis.
Galaxy’s managing director Iggy Tan was cited as saying: “Since ground was first broken at Mt Cattlin in November 2009, Galaxy has achieved first production of lithium concentrate in less than 11 months and we are very proud of this achievement,”he said.
Tan said Galaxy expects to export its first shipment of spodumene product to China in November.
By 2010, Galaxy’s Mt Cattlin mine is planned to be the largest and lowest cost lithium producer in China.
Lithium concentrate and lithium carbonate materials are forecast to be in short supply against high future demand due to advances in long life batteries and sophisticated electronics including mobile phones and computers.