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Orocobre Limited (ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF) ("Orocobre" or "the Company") is pleased to advise progress on construction of its flagship Olaroz Lithium Project. In terms of physical progress the construction program is now approximately 93% complete. A total of approximately US$214m has been spent or committed via executed contracts in the construction project to date. The project is expected to be completed on budget
The Company is pleased to report that at the beginning of June it received all outstanding import approvals ("DJAI's") from the government of Argentina for the remaining major equipment for the lithium carbonate plant (e.g. Alfa Laval Heat Exchangers, Outotec Filters and BEPEX micronizing, compaction and drying units). With these approvals a significant area of risk outside of the Company's control was removed. During the past 2 months high winds, with gusts above 100 km/hr, have been common particularly during the day. While conducive to evaporation, the high wind conditions have created a challenging environment in construction arising from safety constraints relating to people working at heights and the loss of effective working time. To ameliorate these impacts the Construction Management Team has both increased personnel numbers and commenced construction at night when wind speeds are reduced
The lithium carbonate plant commissioning/start up is projected to be at the end of August 2014 with commissioning/startup of the micronizing and drying circuit to follow in mid-September. Full automated control operations are scheduled to be introduced during October
Construction progres
The progress of construction including the month of June is a cumulative 93%
- Solar Evaporation Pond Liners
The liners are currently being installed in the final ponds
- Lithium Carbonate Plant
The lithium carbonate plant is currently 42% complete. The lithium carbonate building frame has been completed allowing for the installation of equipment. The roof and walls of the lithium carbonate plant building will be fitted following completion of the internal plant construction. The installation of FRP tanks is in progress, the boiler has arrived at site and structural works to facilitate the boiler installation are in progress. As further equipment arrives at site it will be installed as per the construction schedule
- Plant Buildings and Warehouses
In total, the plant buildings and warehouses are 70% complete. The dense soda ash warehouse for instance is 100% structurally complete and the internal fit out is being completed
- General Utilities
The gas branch line connection from Gas Atacama was completed and commissioned in April as planned. This key milestone allows the generation of power from gas turbines on site. The installation of gas generation equipment for the production of electricity began in May with the commencement of the installation of the internal network. The commissioning and start-up of the gas generation plant is scheduled for July. Installation of electricity supply infrastructure to the evaporation pond area is in progress and the substation at pond 4B has been commissioned
- Liming Plant
The liming plant was switched to full automatic operation in May and has been operating since without issue
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, Coranzuli, 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. Theunique 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
The lithium carbonate plant commissioning/start up is projected to be at the end of August 2014 with commissioning/startup of the micronizing and drying circuit to follow in mid-September. Full automated control operations are scheduled to be introduced during October
To view all figures and the release, please visit
Http://media.abnnewswire.net/media/en/docs/ASX-ORE-804807.pd
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