Iggy’s back and fully charged

Iggy Tan has re-emerged with Lithium Galaxy almost a decade after resigning as managing director of Galaxy Resources. Despite some lingering GFC headwinds leading up to his June 2013 departure, his legacy will always remain as the person responsible for assembling the global leading vertically integrated lithium business through the Mt Cattlin spodumene project near Ravensthorpe and a lithium processing plant in China.

Tan, who now advocates mindfulness and meditates daily, says he is proud of the achievements of his successors steadying the ship post his exit. No matter what else you hear about this visionary leader, it can never be denied that he was the founding father of a business that ultimately became part of global lithium giant Allkem Limited – now valued at US$9.5 billion.

But now, just seven days short of the 10th anniversary of his departure from Galaxy, he is back and ready to roll the dice with Lithium Galaxy. His new lithium venture will merge with the shell company Mogul Games Group (ASX: MGG) to become a lithium exploration and development enterprise. Plans are already in motion to conduct a public offering worth A$4.5 million (before costs) to finance the merger.

It’s understandable to be sceptical of the latest lithium ventures around the globe. Still, the involvement of Iggy Tan is reassuring when you consider that despite early challenges, Mt Cattlin today produces 137,000 tonnes of spodumene each year, and Jiangsu in China puts 17,000 tonnes of high-purity lithium carbonate onto the market over the same period.

Tan says Lithium Galaxy is not a matter of unfinished business and more about a persistent desire to contribute to the industry’s efforts in meeting the growing demands of electrification. 

“As the chairperson, I aim to leverage my extensive experience in lithium operations and innovative ideas to support the industry in bringing more projects online,” he explains. “There is a pressing need to expedite the implementation of projects to meet the projected demand, as they often face delays and take longer than expected to become operational.”

Tan speaks from a wealth of experience, having been among the first Australian mining executives to identify a significant opportunity in the emerging lithium-ion battery sector. He was ahead of the game when he secured the James Bay Spodumene Project in Canada and the Sal de Vida Brine Project in Argentina for Galaxy, even before Canada was considered a viable option. He ultimately left the company in August 2013.

“Building concentrators globally, including in Canada, has posed significant challenges, with several failures encountered along the way,” he says.

“Despite the simplicity of the concept, successful attempts have been limited. Collaborative efforts and teamwork are essential for improving the process. Rest assured, we have some exciting developments to share in the future, reflecting progress and positive news for the industry.”

“It is essential that the industry works collaboratively and pools vital technical knowledge to meet supply demands rapidly emerging from electric vehicle manufacturers and other emerging renewable energy industries.

Q&A

Tell us about your background, what drives you and maybe something most people don’t know about you.

I hail from Singapore originally, but my upbringing took place on Christmas Island before I relocated to Perth alongside my parents when I turned 12. I pursued my education here in Perth at the University of Western Australia.

Embarking on my chemical career, I delved into the world of the titanium dioxide industry, specialising in the chloride process for 11 years. Subsequently, in 1995, I joined Gwalia Consolidated, assuming responsibility for the Greenbushes lithium mine. I successfully oversaw the commissioning of the inaugural 5,000 tpa lithium carbonate plant at Greenbushes. Unfortunately, Sociedad Química y Minera de Chile (SQM) entered the market, causing a drastic drop in the price of lithium carbonate, and the plant had to be placed under care and maintenance.

I ventured into the quicklime industry for a while before transitioning to managing mineral sand operations in Eneabba and Narngulu for Iluka Resources. From there, I expanded my expertise into industrial minerals, tin, and nickel. Eventually, I circled back to the lithium industry, assuming a role with Galaxy Resources.

My primary life objective revolves around engaging in projects that bring about positive changes for people. I am particularly interested in initiatives that create job opportunities and contribute to the lithium supply for electrification. Building projects fuel my passion, but I also find fulfilment in giving back to the community through involvement with organisations like Rotary. I prioritise meditation and mindfulness during my leisure time, recognising their value in maintaining a balanced and centred mindset. 

And the thing most people probably would be surprised to learn about you?

I’m a second-dan black belt in karate – there you go!

Twenty years ago, you got involved in lithium when nobody was talking about it – what was that like?

I suppose my background story begins at Greenbushes, and once I got a taste of it, I was hooked. At that time, the main application of spodumene was predominantly in the glass and ceramic industry. However, China has already used lithium-ion batteries for scooters and electric vehicles to combat pollution. This development showed promising increased demand, aligning with their 15-year plan.

Would it have been more challenging to convince investors to support you in the past?

Yes, during that period, brokers and investors lacked awareness of the nature of lithium as an element. The prevailing batteries of the time were nickel-cadmium batteries, with lithium-ion batteries only beginning to emerge. However, we foresaw the potential surge in lithium demand due to China’s electrification plan. Consequently, we devoted considerable resources to educating the market about lithium batteries and the factors driving the projected substantial growth in the industry. It is truly gratifying to witness that now, everyone possesses a thorough understanding of lithium.

Did your connection to China provide you with the necessary funding, then?

We recognised early on that potential funding would be from China as they understood the growing demand for lithium-ion powered batteries, particularly with millions of scooters and bicycles transitioning to this technology. China was fully committed to their 15-year plan of electrifying vehicles in cities to combat pollution, making it a tangible reality. Several Chinese equity investors, along with the support of the China Development Bank, provided the necessary funding for the development of the Mt Cattlin Spodumene mine and the downstream Jiangsu Lithium Carbonate project. Additionally, we expedited the Mt Cattlin project, progressing from the initial maiden resource to the first finished product in less than three years.

Do you agree that such a swift move was a significant risk then?

Having previously worked with lithium concentration at Greenbushes, I possessed the expertise to manage the associated risks confidently. I knew precisely the type of plant required for our operations. However, for newcomers to the industry, it can be a considerably longer journey of trial and error. It often involves progressing through various stages, such as scoping, preliminary feasibility studies (PFS), and multiple pilot phases to determine the optimal flow sheet.

In our case, we employed a straightforward four-stage crushing and dense media separation method. Subsequently, we constructed the Jiangsu lithium carbonate plant in China, which ultimately became the most significant plant worldwide, producing an impressive 17,000 tonnes of lithium carbonate. Although we faced initial challenges during the plant’s start-up phase, it has reached its operational capacity, consistently generating the highest quality product globally. This plant has set a benchmark for other refineries worldwide.

But as the world limped from the GFC, you decided to leave – why was that?

We, unfortunately, experienced a tragic incident that resulted in the loss of a few individuals due to an accident. It made me realise that I was possibly experiencing burnout, prompting me to prioritise my mental well-being. I felt it was the right moment to move on and make a change. As for the lithium industry, it has its cycles of ups and downs. Timing plays a crucial role, and it’s often unpredictable. Who could have anticipated the current state of lithium prices just two years ago? It highlights the ever-changing nature of the industry and the importance of adaptability to such fluctuations.

How do you feel now when you see the company you created valued at A$ 15 billion?

It is incredibly gratifying to witness the recent merger of Allkem and Livent. The assets that we built and put together are still in operation and supply lithium for the electrification of the world. Good to see and be part of the industry’s early growth.  

But with Lithium Galaxy, are you continuing some unfinished business?

It is not a matter of unfinished business but rather a desire to contribute to the industry’s efforts in meeting the growing demands of electrification. As the chairperson, I aim to leverage my extensive experience in lithium operations and innovative ideas to support the industry in bringing more projects online. There is a pressing need to expedite the implementation of projects to meet the projected demand, as they often face delays and take longer than expected to become operational.

Building concentrators globally, including in Canada, has posed significant challenges, with several failures encountered along the way. Despite the simplicity of the concept, successful attempts have been limited. Collaborative efforts and teamwork are essential for improving the process. Rest assured, we have some exciting developments to share in the future, reflecting progress and positive news for the industry.”

So, what makes you so confident about Canada and James Bay in the Apollo project?

Drawing from my experience in the James Bay district, I can confidently say that the Apollo project holds immense potential. During my tenure at Galaxy, I acquired the James Bay project, which boasts thick and continuous spodumene mineralisation. These mineralised seams can reach up to 100 meters in thickness, close to the surface and exhibit lithium oxide content well above 1.5%. Furthermore, the area is renowned for its large spodumene crystals, facilitating easier processing.

Like the Mt Cattlin project, the extraction process at James Bay would likely require only four-stage crushing and dense media separation, eliminating the need for flotation. However, the project does present challenges due to its remote location and the need for winterisation measures. Nevertheless, these challenges are solvable, and the project holds great promise with the right approach.

You are expecting a $12m market cap for this Canadian venture – what’s the upside?

At Apollo, we have exceptional geology. Although it’s difficult to quantify, there is promising potential.

Wearing your Altech Batteries MD Hat – How’s the 100 MW sodium chloride nickel battery project going?

Yes, it’s incredibly thrilling! We are currently in the final stages of completing a bankable feasibility study, and we recently had a productive workshop in Germany. We have established strong partnerships with numerous European suppliers because when it comes to constructing a battery plant, manufacturing automation robotics takes centre stage. Our goal is to achieve battery production at a rapid pace, aiming for a rate of 1 large battery cell every 45 seconds. This involves automating ceramic manufacturing, filling, welding, and assembly processes. The emphasis lies on implementing advanced automation and robotics technologies throughout the battery production line.

 

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