PERTH (miningweekly.com) – Dual-listed lithium miner Orocobre has finalised a $180-million finance facility for the Stage 2 expansion of its Olaroz lithium facility, in Argentina.

The debt facility, with a nine-and-a-half-year maturity date and an interest rate of less than 4% a year, was agreed with Toyota Tsusho Corporation, Sales de Jujy SA, Jujuy Energia y Minera Sociedad del Estado, Mizuho Bank and Japan Oil, Gas and Metals National Corporation.

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

The $295-million expansion project will result in the production of about 17 500 t/y of battery grade lithium carbonate, 9 500 t/y of technical grade lithium carbonate as feedstock for the planned 10 000 t/y battery grade Naraha lithium hydroxide plant in Japan, and a further 15 500 t/y of technical grade lithium carbonate.

Orocobre on Friday said that commissioning of the Stage 2 project was expected in the first half of the 2021 calendar year.

Meanwhile, Orocobre also reported that underlying net profit after tax for the full year ended June was down from $25.7-million in 2018 to $24.8-million while underlying earnings before interest, taxes, depreciation and amortization declined from $86.7-million to $54.1-million in the same period.

“Orocobre has continued to deliver robust margins despite weaker market conditions and the introduction of the export duty. Going forward, we will continue to have a strong focus on safety, quality and productivity to cement our position as a mainstream, profitable, low cost producer of lithium carbonate,” said Orocobre MD and CEO Martin Perez de Solay.

Sales revenue for the full year reached $124.7-million, with 12 080 t of lithium carbonate sold at an average price of $10 322/t, down from the $12 578/t achieved in the previous corresponding period.

“We will be focusing on a number of individual improvement projects with the aim of operating more safely, increasing production volumes, improving quality and decreasing costs.”

Looking ahead, Orocobre expected lithium carbonate production to increase by at least 5% in the 2020 financial year, with lithium carbonate prices expected to further decline to around $7 250/t in the September quarter of this year.

Lithium prices have come under pressure as new projects continue to ramp up, boosting supply. Analysts at CRU said earlier this week that the lithium “hype” had finally met “reality”, when lithium prices crashed through the $10/kg LCE mark at the end of July. The analysts say that prices, on a kg basis, would remain in the single-digits for some time.