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Talison achieves 15% price hike for 2012 contracts

Last updated: 05:34 06 Dec 2011 AEDT, First published: 06:34 06 Dec 2011 AEDT

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Talison Lithium (TSE:TLH) said Monday it achieved a 15 percent price increase on several of its sales contracts for calendar year 2012.

The lithium concentrate producer said it has concluded contracts that involve price increases of 15 percent with clients in China, Europe, the U.S., and Japan, across a range of products.

The price hike reflects the current lithium market dynamics, Talison said, adding that it expects similar results for the rest of its sales contracts for the year.

In other news, Talison said the stage two expansion at its Greenbushes Lithium Operation is continuing on schedule and on budget. Foundations for the chemical-grade plant are essentially completed, and steel work installation has commenced.

The company expects to commission the stage two expansion during the fourth quarter of 2012, at which time it will more than double Talison's current production capacity to about 740,000 tonnes of lithium concentrate per year.

Talison, which is based in Perth, Australia, also said it continues to pursue its proposed plant, which would convert lithium minerals into lithium carbonate. After reviewing the status of the plant to date, the company's board of directors approved AUD $3.7 million ($3.8 million) for the next phase of the project.

That phase will start in early 2012, and will include a detailed engineering study of a plant, located in Western Australia, that processes 20,000 tonnes of lithium carbonate each year.

Talison said it is targeting plant commissioning for 2015, and expects its board to make a final decision by the end of 2012.

In Toronto, Talison shares rose 13.09 percent to $3.37, as of 1:40 pm EDT.

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