Construction Update on the Olaroz Lithium Project
Perth, Aug 18, 2014 AEST (ABN Newswire) - Orocobre Limited (
ASX:ORE) (TSE:ORL) ("Orocobre" or "the Company") is pleased to advise progress on the construction of its flagship Olaroz Lithium Project. In terms of physical progress the construction program is now approximately 95% complete. A total of approximately US$221m has been spent or committed via executed contracts in the construction project to date. The project is expected to be completed on budget.
Highlights:
- Gas fired electricity generation commissioned in July as scheduled and evaporation pond lining is nearing completion.
- Start of plant commissioning for the lithium carbonate plant at the end of August, followed by the purification circuit and the drying and micronizing circuits in the period to mid-October. Full automatic operation is expected to be achieved during October.
- Construction is approximately 95% complete. A total of US$221m has been spent or committed and the project is expected to be completed on budget.
The Company is pleased to report that the gas fired electricity generation plant at Olaroz was commissioned as scheduled in July. The lining of the remaining evaporation ponds is 97% complete and the lithium carbonate plant construction is nearing completion.
In spite of the challenges of windy conditions and the need to assist construction contractors with procurement of their remaining material and component requirements, the Company has to date managed to materially maintain its schedule.
The start of the lithium carbonate plant commissioning is scheduled for the end of August with the primary lithium carbonate plant followed by the commissioning of the purification circuit and the drying and micronizing circuits in the period to mid-October. Full automatic operation is expected to be achieved during October.
Construction progress
Solar Evaporation Pond Liners:
The installation of liners in the final ponds is 97% complete.
Piping and Pumps:
The completion of the assembly of piping and pumps in the pond system is in progress.
Lithium Carbonate Plant:
The lithium carbonate plant is currently in the process of having the stainless steel pipework installed and external cladding fitted, which signals the plant is nearing completion. The installation of tanks continues and the assembly of "Reactor A" has been completed. In regard to auxiliary services, the civil works and mounts in the compressor room have been completed, assembly of compressors and filters is in progress, the boiler room is complete and the mounting of internal tanks, boilers and pipework are in progress. The structure for mounting the Bepex micronizing unit is close to completion.
General Utilities:
The gas branch line connection from Gas Atacama was completed and commissioned in April as planned. The installation of gas generation equipment for the production of electricity began in May with the commencement of the installation of the internal network.
A key milestone was achieved with the commissioning of the gas generation plant in July as scheduled
Liming Plant:
The liming plant was switched to full automatic operation in May and continues to operate in line with expectations.
The Company continues to follow the "Jujuy First" strategy to successfully work with suppliers and the employment bureau to focus on the hiring of local people from the communities of Olaroz, Huancar, Puesto Sey, Pastos Chicos, Catua, Susques, Jama, El Toro, Coranzulí, San Juan and Abrapampa. The project implementation is through EPCM (Engineering, Procurement and Construction Management) with a high proportion of local involvement through construction and supply contracts and local employment. The community and shared value policy "Jujuy First" continues to be a key success factor, training local people under the supervision of high quality experienced professionals.
The Olaroz lithium project is being developed by Orocobre (66.5%) with partners Toyota Tsusho Corporation ("TTC") (25%) and the Jujuy Province mining and energy company, JEMSE (8.5%) with a construction budget of US$229m including contingency.
To view all figures and photographs, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-811907.pdf
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (
ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentine based industrial chemicals company through its portfolio of lithium, potash and boron assets. In partnership with Toyota Tsusho Corporation (TTC) and JEMSE, Orocobre has built and is now operating the world's first commercial, brine-based lithium operation constructed in approximately 20 years.
In 2018 Orocobre announced the Stage 2 Expansion of its flagship Olaroz Lithium Facility in Argentina. The Stage 2 Expansion will add 25,000 tpa of lithium carbonate production capacity, taking full production and capacity to 42,500 tpa of lithium carbonate for sale to industrial, technical and battery markets, positioning Orocobre as one of the world's largest and lowest cost lithium chemicals producers.
Additionally, Orocobre and Toyota Tsusho Corporation have commenced construction of the 10,000 tpa lithium hydroxide plant in Naraha, Japan. The construction of the Naraha Lithium Hydroxide Plant will further cement Orocobre's position as a global lithium chemicals producer operating at the bottom quartile of the lithium cost curve. This new hydroxide plant will be the first of its kind in Japan and will provide Orocobre product diversification suitable for different battery technologies and the potential for significant margin growth on our primary lithium carbonate being converted to battery grade lithium hydroxide.
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