Half Year Accounts
Brisbane, Mar 4, 2015 AEST (ABN Newswire) - Orocobre Limited's (
ASX:ORE) (TSE:ORL) Olaroz Project Joint Venture is operated through Sales de Jujuy S.A. (SDJ SA) a subsidiary of Sales de Jujuy PTE, a Singaporean company that both Orocobre and Toyota Tsusho Corporation (TTC) respectively, are shareholders in directly and indirectly. The effective Olaroz Project equity interest is Orocobre 66.5%, TTC 25.0% and Jujuy Energia y Mineria Sociedad del Estado ("JEMSE") 8.5%.
The joint venture between the Company and TTC was created on 17 October 2012 and the accounting consequences reflected in the 30 June 2013 financial statements. Since that date Orocobre has recognised its interest in the joint venture (JV) as an equity accounted investment (please refer note on JV Reporting). Under the equity method of accounting, Orocobre's interest in the joint venture was recognised on the balance sheet at the date of the transaction at fair value.
This carrying amount is then adjusted for subsequent equity investments, the Company's share of the post-acquisition profit or loss and other equity movements of the joint venture and any dividends received. As a result capital expenditure by the joint venture and draw downs on the project financing facility are not being recognised directly in the Group's financial statements.
OLAROZ LITHIUM PROJECT (Orocobre 66.5%)
The Olaroz Lithium Project is located in the Puna region of Jujuy Province in northern Argentina approximately 230 kilometres northwest of the capital city of Jujuy at an altitude of approximately 3900 metres above sea level. The project is the first large scale "green fields" lithium brine development in approximately twenty years and was designed to have an initial capacity of 17,500tpa of battery grade lithium carbonate. This capacity accounts for approximately 10% of the current global lithium market, which is forecast to experience a 10% year-on-year growth in demand until 2020.
To view the full half year accounts, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-846357.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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