Orocobre Limited Stock Market Press Releases and Company Profile
Construction Update on the Olaroz Lithium Project
Construction Update on the Olaroz Lithium Project

Perth, Sep 22, 2014 AEST (ABN Newswire) - Orocobre Limited (googlechartASX:ORE) (googlechartTSE:ORL) ("Orocobre" or "the Company") is pleased to advise progress on the construction and commissioning at its flagship Olaroz Lithium Project. In terms of physical progress the construction program is now nearing completion with the commissioning of circuits occurring as they are released from construction. The project is expected to be completed on budget.

Construction Activities

Key construction activities in the lithium carbonate plant in recent times have been the mounting of carbon steel and stainless steel pipework, the installation of air compressors, tanks and air treatment, the assembly and installation of the Bepex micronizing equipment and fitment of heating ducts and air supply.

As previously advised in the Company's last construction update, the Company has been assisting some construction contractors with the procurement and importation of some materials. One of these materials has been PVDF* piping which was being sourced from Europe. Unfortunately, in spite of the Company's assistance, this piping arrived later than scheduled causing minor delay in the completion of the piping on a number of circuits and the hand-over from construction to commissioning. Consequently, the expected time for the lithium plant to be operational, including purification and micronizing circuits, has been delayed by approximately three weeks with the plant scheduled to be operational in the second week of November.

*Polyvinylidene Fluoride (PVDF) is a unique thermoplastic with properties which allow it to be used for very aggressive or highly specialised applications. Although expensive compared to other thermoplastics, PVDF offers an economically attractive alternative to many "exotic" materials in process lines where limited working life of other materials necessitates frequent replacement.

Commissioning and Production

Commissioning of the soda ash system, air compressors, industrial water supply and reverse osmosis plant, brine pumps to the carbonate plant, boilers and process tanks is in progress or has been completed.

The gas fired electricity generation plant commissioned in July continues to operate smoothly and provide all the power requirements. The liming plant, which is used to treat brine to remove magnesium, is operating in automatic mode at a rate of 230l/s compared to a design rate of 200l/s and is expected to reach a rate of 250 l/s over coming weeks. Pond filling from the bore field is operating at 200l/s compared to a design rate of 180l/s and is expected to peak at more than 230l/s with the commissioning in October of a final bore.

The Company continues to follow the community and shared value policy 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 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.

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About Orocobre Limited

Orocobre Limited (ASX:ORE)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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Contact

David Hall
Business Development Manager
T: +61 7 3871 3985
M: +61 407 845 052
E: dhall@orocobre.com

James Calaway
Chairman
M: +1 (713) 818 1457
E: jcalaway@orocobre.com



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