https://www.engineeringnews.co.za

Orocobre to decide on $190m expansion in mid-2017

15th December 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Dual-listed Orocobre is aiming to double lithium carbonate production from its Olaroz project, in Argentina, to 35 000 t/y by late 2018 or early 2019, and plans to announce a final investment decision in mid-2017.

The company’s announcement on Thursday followed a positive scoping study on the expansion of the Olaroz project, which considered a number of different expansion options focused on the production of lithium carbonate and lithium hydroxide, using either conventional or nonconventional technologies, or a combination of technologies with different rates of production.

The Stage 2 expansion of the Olaroz facility would require a capital spend of some $190-million, and would likely be financed through a combination of project finance and operating cash flow from the Stage 1 operation, ASX- and TSX-listed Orocobre reported on Thursday.

The process to obtain the necessary permits and approvals for the Stage 2 expansion has started, and will run concurrently with engineering and design work.

Meanwhile, Orocobre reported that it was also investigating the feasibility of constructing a 10 000 t/y battery grade lithium hydroxide plant, with the preferred location being in Japan. This investment would require $30-million, in addition to government incentives. The company said financing for this development would likely include debt and offtake financing.

The company believes market fundamentals for carbonate products are strong. MD and CEO Richard Seville previously said that the timing and quantity of new supply were significantly overestimated, which represented an opportunity for Orocobre to expand its production capacity.

Orocobre declared commercial production at Olaroz in May. The facility has the capacity to produce 17 500 t/y and Orocobre has set a production target of 15 000 t/y for the 2017 financial year, which ends in June.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Trotech
Trotech

Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.

VISIT SHOWROOM 
Monitor Distributors
Monitor Distributors

We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.05 0.932s - 140pq - 2rq
Subscribe Now