Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Lithium producer Talison chalks up double digit increase in lithium concentrate sales

Talison Lithium (TSX:TLH), producer of almost a quarter of the world's lithium, said Tuesday that it saw a double-digit increase in both its year-end sales and production of lithium concentrate from its Greenbushes lithium mine in Western Australia.

For the year ending June 30 2010, Talison produced a record 276,906 tonnes of lithium concentrate, representing a 33% increase over 2009. The company also sold 256,767 tonnes, which is a 19% rise over the previous year.

The demand for both technical and chemical grade lithium concentrate increased during 2010 as markets showed signs of recovery after the financial crisis.

The company is currently working on the stage 1 expansion of chemical grade lithium concentrate production capacity at Greenbushes, with completion anticipated early in 2011. The expansion will add 50,000 tonnes per year of lithium concentrate production capacity, the company said.

In September, Talison initiated a drill program at Greenbushes, with the aim of significantly increasing its lithium reserves and resources.

The current proven and probable mineral reserves total 9.6Mt at a grade of 3.9% Li2O, while the measured and indicated mineral resource (inclusive of the mineral reserves) totals 22.0Mt at a grade of 3.7% Li2O. An updated reserve and resources statement is planned for the second quarter of next year.

Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia, which has been in production for more than 25 years. Based on current reserves and production plans, the mine boasts a life of more than 12 years.

The company is the primary supplier to the Chinese lithium chemical producers, who in turn are the major suppliers to the Chinese battery market.

In addition, it explores for lithium in Chile at the Salares 7 lithium project, made up of seven salars (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile.

Disclosure: no position