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Reed Resources sniper fire towards GXY
It appears that Reed Resources (RDR) are having a go at Galaxy's position in the Lithium Carbonate supply business. GXY are well ahead of Reed but Reed say that they aren't going to be dependent on China for the upgrade of their Lithium ore to Lithium Carbonate and that is a significant factor that differentiates the two companies... game on...
Reed Resources to target lithium deals with Japan, US Sarah-Jane Tasker | October 29, 2009 Article from: The Australian EMERGING lithium miner Reed Resources plans to target Japanese and US markets, to offer a secure supply alternative to China. Managing director Chris Reed flagged today that when the company starts to look at lithium carbonate down streaming, it was doubtful it would look to the Asian economic powerhouse. “I am reticent to have that (down streaming) in China,” he told the Brisbane Mining conference today. “I think you can build (a plant) in China, you can send the concentrate there, but I’m not sure if the lithium carbonate would ever leave their shores. “We would probably prefer to do business with the Japanese or Americans.” Demand for lithium, used in batteries, glass, air-conditioning and chemicals, is forecast to triple over the next 10 years. Reed Resources this week announced a deal with Mineral Resources to progress its West Australian lithium project. Mineral Resources has agreed to conduct the feasibility study and fund the development of the project, to earn a 40 per cent interest in Reed Resources' Marion operation in the Goldfields region. Mr Reed said Galaxy Resources, the Australian player tipped to reach lithium production first, will build and develop their own plant but they recently completed a deal with a Chinese investment house to finance its West Australian project. “If Reed were to own a plant, I would be more comfortable owning a plant in Kalgoorlie than in China,” he said. “I believe that Japan do not want to become reliant on getting Chinese carbonate.” (Interesting times. Better to own both IMO)
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