Orocobre Limited: Construction Update on the Olaroz Lithium Project
March 05 2014 - 5:15AM
Marketwired
Orocobre Limited: Construction Update on the Olaroz Lithium Project
BRISBANE, AUSTRALIA--(Marketwired - Mar 5, 2014) - Orocobre
Limited (ASX:ORE)(TSX:ORL) ("Orocobre" or "the Company") is pleased
to advise progress on construction of the flagship Olaroz Lithium
Project.
- Liming plant fully commissioned and magnesium removal from
brine commences as brine is pumped from pond 4B to 4A
- Gas pipeline completed and awaiting connection by Gas
Atacama
- Construction projected to be completed on time and within
budget
In terms of physical progress the construction program is
approximately 80% complete. A total of approximately US$178m has
been spent or committed via executed contracts in the construction
project to date.
To view the image of the Liming Plant, please visit the
following link:
http://media3.marketwire.com/docs/931425A.pdf
The southern bore field brine duct was commissioned on 26th
February and now delivers brine directly into pond 4B from the
southern field. This replaces the temporary trench system which was
moving brine to the northern field intermediate pump station.
The liming plant commissioning was officially completed on 10th
February. This was marginally behind the end of January target due
to issues with the electrical control circuits for the ball mill
motor. With the liming plant now commissioned, magnesium removal
from the brine is occurring as brine is pumped from pond 4B to 4A.
This is an important step in the process of brine purification.
The gas pipeline has been completed and we are now awaiting the
gas branch line connection from Gas Atacama to be completed in
order to commission the use of natural gas. This is expected to
occur in the next two months. There are two gas generators on site
with a further seven units in transit.
The reverse osmosis plant is ready for delivery and is
undergoing the import approval process, the completion of which is
imminent.
Construction works continue on the lithium processing plant,
finished goods warehouse and the soda ash warehouse.
To view the images accompanying this section of the
announcement, please visit the following link:
http://media3.marketwire.com/docs/931425B.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 (ASX:ORE)(TSX:ORL), 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 at
the end of 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 AsiaDavid HallBusiness Development ManagerOrocobre
LimitedT: +61 7 3871 3985 / M: +61 407 845 052E:
dhall@orocobre.comNorth AmericaJames CalawayChairmanOrocobre
LimitedM: +1 (713) 818 1457E: jcalaway@orocobre.com
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