Shares in Galaxy Resources firmed after the company announced its troubled lithium carbonate plant in China had resumed operations following the death of two workers in an industrial accident.
Galaxy announced this morning that China's safety authorities had cleared the plant to resume operations after a fibreglass pipe ruptured at the company's plant on November 22, spilling sodium sulphate onto 11 staff and contractors.
Two workers have since died from their burns.
Galaxy said in a statement this morning it expected the plant to be fully operational and producing lithium carbonate within the week.
It said a safety and hazard review had been conducted to ensure complete and ongoing safety at the plant.
Galaxy managing director Iggy Tan thanked Jiangsu site personnel and management for their efforts to oversee the redesign, repair and commissioning of the affected section of the plant.
"We are pleased to have obtained the Zhangjiagang Safety Bureau's clearance and to have recommenced operations at Jiangsu," he said.
However Galaxy did not indicate whether a proposed $66.2 million funding injection into the company by East China Mineral Exploration & Development Bureau would go ahead.
ECE last month withdrew its proposed investment last month on safety concerns about the plant.
"ECE has indicated to Galaxy it is willing to re-consider the investment when Galaxy's Jiangsu Lithium Carbonate Plant in China returns to stable operation," the company said at the time.
The company's investment was part of a broader $81 million capital raising announced in early November.Galaxy shares were up two cents, or 5.2 per cent, to 40.5 cents at 7.50am.