Emerging lithium producer Galaxy Resources says it has secured approval to build a processing plant at its Mt Cattlin project near Ravensthorpe.
The Department of Environment and Conservation approval allows the company to begin the earthworks and construction of the plant and begin its operation.
Managing director Iggy Tan said the company expected to secure a mining approval for the project in the next month.
The company is aiming to mine and process 1 million tonnes per annum over 15 years, with the first spodumene concentrate production scheduled for the third quarter of 2010.
Galaxy is also planing to build a 17,000 tonnes per annum lithium carbonate plant in China.
It believes lithium concentrate and lithium carbonate raw materials will be in short supply and face high future demand because of advances in long life batteries and sophisticated electronics in hybrid and electric vehicles, mobile phones and computers.
Galaxy shares were up 2.5 cents, or 4 per cent, to 65 cents at 9.20am.
STUART McKINNON
