New Lithium Mine Announced  

Mineweb reports development of a new Australian lithium mine has been announced -

Australian diversified resources company Reed Resources Ltd, is pleased to announce the receipt from joint venture partner Mineral Resources Limited of notice that they intend to commence operations at the Mt Marion Lithium Deposits, near Kalgoorlie, Western Australia.

Production is expected to commence in March 2011 quarter at an initial rate of 200,000tpa of spodumene concentrate grading nominal 6.5% Li2O, containing some 13,000 tonnes lithium oxide (Li2O). Total contained lithium oxide resources at present are 128,000 tonnes (Li2O). The Joint Venture has been expanded to include mica, tantalum and potash feldspars; testwork has highlighted the potential to recover significant volumes of these by products.

This project will ensure both Reed and Mineral Resources can become major participants in the world lithium market.

Bolivian magnate R. Marcelo Claure had been looking for a way to make a broad-based bet on lithium. A hedge fund in which he invests found him one.

The fund, MC Capital Advisors, this year turned to a company that creates exchange-traded funds. The result was Global X Lithium, an ETF that tracks lithium producers and battery makers. It is expected to launch this week.
MC Capital provided seed money to New York-based Global X Management Co., to start the ETF, and will receive half the ETF's profits.

Global X Lithium is an unusual case of ETF creation. But it also is part of a trend in which ETF firms are joining forces with other companies to launch funds that track obscure parts of the financial markets. ETFs typically are tradable securities designed to track an index of stocks, bonds or commodities.

Among ETFs soon to be released are funds designed to track small-cap companies in Thailand, producers of rare metals such as gallium and selenium, and shares of fishing-related companies.