SMM10, March 24-Australian lithium miner GalaxyResourcesLtd said Thursday it will scale back its operations at its Catlin Mountain mine as the industry faces pressure from weak prices and lower-than-expected demand from China.
Galaxy said in a statement that it was reviewing the operation of (Mt Cattlin) in Mount Catlin and expected its production to be reduced by about 40 per cent.
Rio Tinto said the US-China trade dispute and lower-than-expected economic growth in China had had an impact on the overall economic outlook and short-term sentiment in the electric vehicle and lithium-ion battery markets.
Weak production of new energy vehicles in China and weak production in the United States were the main nuclear causes of weak lithium demand in the third quarter of 2019.
Australian lithium producers have been cutting supplies in recent months because of plummeting prices. In June, China cut subsidies for electric vehicles and raised the standard for new energy vehicles eligible for subsidies.
Galaxy said the review would help the company ensure that Mount Catlin continues to create positive operating margins and extend the life of the mine.
Galaxy cut the upper limit of its annual production guidance to 193000 dry metric tons of lithium concentrate, down from 210000 tons per ton.
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