Oct 24 (Reuters) - Australian miner Galaxy Resources Ltd GXY.AX said on Thursday it was undertaking a review of operations at Mt. Cattlin, its most important lithium mine, due to weak market conditions in the sector.
Galaxy said in a statement it would scale back on operations at the site, reducing material mined by about 40%.
The review would help the miner ensure the site continues producing positive operating margins and enable the company to extend Mt. Cattlin's mine life, it said.
Australian lithium producers have been cutting supply amid plummeting prices in recent months due to lower demand from Chinese customers. trimmed the upper end of full year production guidance to as much as 193,000 dry metric tonnes of lithium concentrate, against the upper limit of 210,000 dmt it had earlier forecast.
During the quarter ended Sept. 30, the miner shipped a total of 58,278 dmt of lithium concentrate, against 29,439 dmt it shipped in the preceding quarter.