Name of the Project
Olaroz lithium facility – Stage 2 expansion project.

Location
Jujuy province, in northern Argentina.

Project Owner/s
The project is a joint venture between Orocobre and Toyota Tsusho Corporation.

Project Description
The first sale of lithium carbonate from the Olaroz lithium facility started in late April 2015 and volumes have been increasing since then.

The Stage 2 expansion will increase lithium carbonate production capacity by about 25 000 t/y, bringing total Olaroz production capacity to an estimated 42 500 t/y.

The expansion will produce technical-grade lithium carbonate (>99%), part of which will be used as feedstock for the proposed Naraha lithium hydroxide plant to be built in Japan.

During the development of Stage 2, the Stage 1 plant will progressively migrate to 100% battery-grade lithium carbonate production.

Once full production rates have been achieved, the product distribution after Stage 2 is expected to be:

• 17 500 t/y of battery-grade lithium carbonate;

• 9 500 t/y technical-grade lithium carbonate as feedstock for 10 000 t/y battery-grade lithium hydroxide production at the Naraha lithium hydroxide plant and

• 15 500 t/y of technical-grade lithium carbonate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The capital expenditure for Stage 2 is expected to be $295-million, including a $25-million contingency.

This estimate excludes the crystalliser/evaporator project, which will operate for Stage 1 and Stage 2, and on which feasibility studies are being undertaken.

The expected cost of this project is about $15-million and will be subject to normal joint venture capital approval processes in due course.

Planned Start/End Date
Commissioning of Stage 2 at Olaroz and the Naraha lithium hydroxide plant are expected to occur during the second half of 2020.

Latest Developments
Orocobre has told shareholders that the Covid pandemic continues to impact on work on the Stage 2 expansion of the Olaroz project, with construction work now about 50% completed.

A scoping study for a Stage 3 expansion is expected to start in the March quarter and will investigate options for additional production of between 25 000 t/y and 50 000 t/y from Olaroz, Cauchari or a combination of both, leveraging off the existing infrastructure.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Orocobre, tel +61 7 3871 3985 or email mail@orocobre.com.au.