Galaxy back on track at Jiangsu

Shares in Galaxy Resources firmed after the company said its Jiangsu lithium carbonate plant in China had returned to full and stable production following an accident which claimed the lives of two workers last year.

Jiangsu had been offline since a pipe rupture at the plant injured 11 workers during a scheduled maintenance shutdown in November.

Two injured workers have since died from their burns.

But Galaxy said today the plant had been fully operational and producing battery-grade lithium carbonate product without any major disruptions since February 8.

"Sales of both technical-grade and battery-grade lithium carbonate have also recommenced," the company said in a statement.

Galaxy managing director Iggy Tan said it had been a very difficult and emotional quarter for Jiangsu and Galaxy staff, but it was a credit to the team to have brought the plant back online so quickly and efficiently.

"Jiangsu is now producing at a stable rate and, importantly, producing the desired battery-grade lithium carbonate," he said.

"We will now continue to increase production and sales as part of Jiangsu's ramp-up program."

Galaxy shares were up two cents, or 5.33 per cent, to 39.5 cents at 11.05am.