Olaroz Lithium Facility Operations Update
Brisbane, Feb 9, 2016 AEST (ABN Newswire) - Orocobre Limited (
ASX:ORE) (TSE:ORL) (Orocobre or the Company) wishes to advise on progress at the Olaroz Lithium Facility.
- Production of 699 tonnes of lithium carbonate was achieved in January, an increase of 272 tonnes over December and above guidance.
- The "de-bottlenecking" programme commenced mid last year was completed.
- Cash operating cost breakeven achieved.
- Production for the March Quarter is forecast to be approximately 2,400 tonnes.
Production update
Production at the Olaroz Lithium Facility continued to increase in January, with 699 tonnes of lithium carbonate produced, an increase of 272 tonnes on December. Included in the 699 tonnes produced in January is 80 tonnes recovered from within the purification circuit.
De-bottlenecking programme
The de-bottlenecking programme which commenced mid last year was finalised. The final piping and circuit commissioning associated with the additional boiler installed and commissioned in December was completed in January. This increase in boiler capacity and improved heat distribution and control systems is anticipated to permit the crystallizers to operate at design temperatures and full production capacity.
Production Guidance
With the "de-bottlenecking" projects now materially completed and cash operating cost breakeven (excluding taxes paid or reimbursed, financing costs and depreciation) achieved in January, the Olaroz Lithium Facility is now approaching the final stage of production ramp up. The timing of achievement of the nameplate production run rate is dependent upon the successful optimisation of operating practice and process controls.
The forecast for the achievement of the nameplate production rate remains September 2016.
Production for the March quarter is forecast at approximately 2,400 tonnes.
Sales Orders
The sales orders to the first five (5) battery market customers who have completed the final evaluation process and placed commercial purchase orders are scheduled for dispatch in February and March. Some customers in the battery sector are still completing the final evaluation process. Forecast production for Q1 is fully committed and negotiations are in progress for Q2 supply to customers.
Market Conditions
The lithium market remains tight, driven by continuing strong demand and supply side constraints resulting in continued upward pressure on market prices for lithium carbonate. Market conditions in China remain very tight exacerbated by manufacturing operations in China constrained by weather conditions and scheduled maintenance activities.
Managing Director Comments
Managing Director, Richard Seville, said, "With the debottlenecking programme materially complete, we look forward to concentrating on optimisation activities to continually improve performance month by month. We are greatly encouraged by the rapidly growing lithium market and most importantly the support shown by our customers which we sincerely appreciate. We now set our sights on the achievement of the nameplate production rate, forecast for September 2016."
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-905338.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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