Orocobre Limited: Construction Update on the Olaroz Lithium Project
December 18 2013 - 7:46PM
Marketwired
Orocobre Limited: Construction Update on the Olaroz Lithium Project
BRISBANE, AUSTRALIA--(Marketwired - Dec 18, 2013) - Orocobre
Limited (TSX:ORL)(ASX:ORE) ("Orocobre" or "the Company") is pleased
to advise that progress on the Olaroz Lithium Project continues to
proceed on time and within budget.
In terms of physical progress the construction program is
approximately 70% complete.
The brine pumping rate has reached approximately 190 l/s. The
steady state operational rate required is 180l/s with a peak
filling rate of approximately 220l/s to be achieved as the
remaining bores are commissioned.
The liming plant commissioning schedule commenced on the 15th of
December.
The gas pipeline has been completed. The precommissioning
schedule for the gas pipeline commenced on the 13th of
December.
Evaporation pond earthworks remain ahead of schedule.
Evaporation pond 1B is on schedule for lining to be completed in
December.
Construction works continue on the lithium processing plant,
finished goods warehouse and the soda ash warehouse.
The electricity generation plant is currently under construction
and is on schedule for completion in December. There are currently
3 diesel generators in service.
The project continues to proceed on time and within budget. A
total of approximately US$156m has been spent or committed via
executed contracts in the construction project to date.
Orocobre also took part in the International Seminar of
Engineering and Construction in the Mining Industry in Buenos Aires
during the 28th and 29th of November. Country Manager, Jose de
Castro was one of the speakers.
To view the images associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/orl1218images.pdf.
More images are available on our web page under "Gallery".
Please click here for the most recent images.
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 unique 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. First
production is scheduled for the end of the second quarter,
2014.
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange
and Toronto Stock Exchange (TSX:ORL)(ASX:ORE), and is building a
substantial Argentinian-based industrial minerals company through
the construction and operation of its portfolio of lithium, potash
and boron projects and facilities in the Puna region of northern
Argentina. The Company is building in partnership with Toyota
Tsusho Corporation the first large-scale, "greenfield" brine based
lithium project in 20 years at its flagship Salar de Olaroz
resource, with projected production of 17,500 tonnes per annum of
low-cost battery grade lithium carbonate scheduled to commence in
Q2 2014. The Company also wholly-owns Borax Argentina, an important
regional borate producer. Orocobre is included in the S&P/ASX
300 Index and was named 2012 Mining Company of the Year by
Argentine mining magazine Panorama Minero and the Fundacion para el
Desarrollo de la Mineria Argentina ("Fundamin" or Foundation for
Development of Argentina Mining). For further information, please
visit www.orocobre.com.
Caution Regarding Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of applicable securities legislation.
Forward-looking information contained in this release may include,
but is not limited to, the draw down of finance for the Olaroz
Project, the completion of construction at the Olaroz Project and
the timing thereof, the commencement of commercial production at
the Olaroz Project and the timing thereof, the cost of construction
relative to the estimated capital cost of the Olaroz Project, the
design production rate for lithium carbonate and potash at the
Olaroz Project, the expected brine grade at the Olaroz Project, the
expected operating costs at the Olaroz Project and the comparison
of such expected costs to expected global operating costs, and the
ongoing working relationship between Orocobre and the Province of
Jujuy.
Such forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
actual results to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to the risk of further changes in government regulations,
policies or legislation; the possibility that required concessions
may not be obtained, or may be obtained only on terms and
conditions that are materially worse than anticipated; the risk
that the conditions precedent to draw down the project financing
with Mizuho Corporate Bank will not be met; that further
funding may be required, but unavailable, for the ongoing
development of the Company's projects; fluctuations or decreases in
commodity prices; uncertainty in the estimation, economic
viability, recoverability and processing of mineral resources;
risks associated with weather patterns and impact on production
rate; risks associated with construction and development of the
Olaroz Project; unexpected capital or operating cost increases;
uncertainty of meeting anticipated program milestones at the Olaroz
Project; general risks associated with the feasibility and
development of the Olaroz Project; as well as those factors
disclosed in the Company's Annual Report for the year ended June
30, 2013 filed at www.sedar.com.
The Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable.
Assumptions have been made regarding, among other things: the
timely receipt of required approvals and completion of agreements
on reasonable terms and conditions; the ability of the Company to
obtain financing as and when required and on reasonable terms and
conditions; the prices of lithium and potash; and the ability of
the Company to operate in a safe, efficient and effective manner.
Readers are cautioned that the foregoing list is not exhaustive of
all factors and assumptions which may have been used. There can be
no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking
information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
ABN 31 112 589 910
Australia and Asia: Orocobre LimitedDavid HallBusiness
Development Manager+61 7 3871 3985 or M: +61 407 845
052dhall@orocobre.comNorth America: Orocobre LimitedJames
CalawayChairmanM: +1 (713) 818
1457jcalaway@orocobre.comwww.orocobre.com
Orocobre (ASX:ORE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Orocobre (ASX:ORE)
Historical Stock Chart
From Apr 2023 to Apr 2024
