Mit­subishi inks deal to get Mt Cat­tlin go­ing again

Kalgoorlie Miner - - BUSINESS - Nick Sas

Raven­sthorpe’s moth­balled Mt Cat­tlin mine is a step closer to a kick­start af­ter Ja­panese gi­ant Mit­subishi Cor­po­ra­tion banked ex­clu­sive rights to sell the mine’s pro­duc­tion.

The mine’s new op­er­a­tor, Gen­eral Min­ing, said Mit­subishi would act as prin­ci­pal buyer of the mine’s spo­dumene con­cen­trate, with Gen­eral paid by Mit­subishi for all sales for the next four years.

Mit­subishi was the main buyer of spo­dumene from the mine, pre­vi­ously owned by Gal­axy Resources, be­fore Gal­axy moth­balled the project in 2012 re­sult­ing in a ma­jor share price col­lapse.

Gal­axy and Gen­eral Min­ing, which is backed by Perth deal­maker Michael Fo­tios, locked in a $25 mil­lion deal in July to re-start min­ing, with Gen­eral re­quired to spend $7 mil­lion on the project be­fore March.

Gal­axy and Gen­eral have split own­er­ship of the mine.

Un­der the new agree­ment, Mit­subishi would be re­quired to use “rea­son­able en­deav­ours” to ob­tain the best sell­ing-de­liv­ered price pos­si­ble for the mine’s spo­dumene con­cen­trate, a state­ment said.

“Mit­subishi will have pri­or­ity to the com­pany’s pro­duc­tion over spot buy­ers, pro­vided it at least matches the spot price,” it said.

Gal­axy put Mt Cat­tlin on care and main­te­nance in 2012 be­cause of de­lays with the ramp-up of its lithium pro­cess­ing plant in China, which it sold to Sichuan Tianqi Lithium In­dus­tries for $US173.2 mil­lion in April.

The mine life of Mt Cat­tlin is 18 years, ac­cord­ing to Gal­axy.

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