Go-ahead for $295m Argentina lithium expansion
The boards of joint venture partners Orocobre and Toyota Tsusho Corporation (TTC) have approved a 25 000 t/y expansion of the Olaroz lithium facility, which will increase the Argentina-based operation’s output to 42 500 t/y.
Announcing the final investment decision this week, Orocobre said that the total capital expenditure for the expansion had increased from $285-million to $295-million, including $25-million contingency.
This excludes the crystalliser/evaporator project, which is currently the subject of a feasibility study. The project is expected to cost about $15-million.
The expansion is to be funded by a combination of project debt, operating cash flows and shareholders loans, with a Japanese bank expected to provide $180-million in project finance. Orocobre has about $308-million in cash available to fund its equity contributions, the ASX- and TSX-listed company stated.
Following the Stage 2 expansion, Olaroz will produce about 42 500 t/y of lithium carbonate, 17 500 t/y of which will be battery grade lithium carbonate and the balance will be technical grade.
About 9 500 t/y of the technical grade lithium carbonate will be used as feedstock for the 10 000 t/y battery grade lithium hydroxide production plant to be built in Japan.
Orocobre said that negotiations on the engineering, procurement and construction contract for the Naraha lithium hydroxide plant were advancing rapidly between TCC as operator and Veolia as preferred contractor.
Commissioning of Stage 2 at Olaroz and the Naraha plant are expected to occur in the second half of 2020.
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