C O M P A N Y O V E R V I E W
Orocobre:
Orocobre Surges to the Top of the Industry Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years Written by: Eric Harding Produced by: Nathan Zeke
OROCOBRE
Olaroz Opening Ceremony
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fter seven years of planning, developing and constructing, Orocobre’s Salar de Olaroz facility is now ramping up production of high quality lithium carbonate. Their goal is to reach nameplate capacity of 17,500tpa by the fourth quarter of 2015. The enormity of the Olaroz resource, combined with the sustainable practices of the business, support the potential for expansion plans and additional stage developments to occur in line with a growing lithium market demand. Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years and is 5
based on a world-class resource. “We have a company which operates based on principals defined and agreed by our management,” said Richard Seville, Orocobre’s Managing Director and CEO. “We have a sense of ownership of what we do, and have the ability to make and take the opportunity.” Building Olaroz Located in the elevated Puna region of Argentina’s north-west province Jujuy, Olaroz is an area of 63,000 hectares of tenements over a salt lake containing high amounts of lithium and potash in brine. The
MINING
Accepting the 2014 Mining Argentina Award
project is well served by surrounding key infrastructure, including sealed roads, high voltage electricity, gas pipelines, and rail access. Construction on the estimated US$229 million project began late in November 2012, with construction taking about 18 months. Approximately 150 employees work on site, and while construction of the facility has been completed, there is some final rectification work being conducted on the lithium carbonate production plant to allow the achievement of the nameplate production rate. The facility began as a joint venture
project built in partnership with Japanese trading giant Toyota Tsusho Corporation (TTC), with the initial agreement beginning in January 2010 and the partnership agreement signed in October 2012. The agreement gave both sides a detailed financing plan set up to secure TTC’s direct participation and support for funding the Olaroz project. Since then, the two companies have worked closely together to advance the project. In a business where product quality is most important, TTC’s investment provided a strong endorsement of the quality of the Olaroz resource, and the high purity w w w. rocobre.com/
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OROCOBRE
MIXING SOLUTIONS FOR LITHIUM PROCESSING (Li2CO3) Design of complete agitated process units n Scale-up 50 litres → to production size directly n Product Quality high purity & perfect crystal size n CO Yield close to 100% 2 n
contact: minerals@ekato.com, +49 (0) 7621 290, www.ekato.com
“We have a company which operates based on principals defined and agreed by our management. We have a sense of ownership on what we do, and have the ability to make and take the opportunity.” – Richard Seville, Orocobre managing director and CEO
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battery grade product produced at the Olaroz Facility.
boron minerals and refined chemicals producer that has been in operation for over 50 years. Partnerships Borax Argentina is one of only a Prior to receiving final government few major borate deposits globally approval to commence construction currently in production. of the project, Orocobre entered into These operations produce a an agreement with Jujuy Energia y wide variety of boron chemical Mineria Sociedad del Estado (JEMSE). products including boric acid, borax A mining investment company owned decahydrate, borax pentahydrate, by the Jujuy government, JEMSE anhydrous borax and boroglas holds an equity interest in the project, from concentrates and ulexite and provided assistance during the minerals carted from the mines and development of Olaroz. concentrators. Borax Argentina The final government approval, operates three open pit mines, along with the JEMSE agreement, a borax decahydrate plant in cleared the way to finalise the Tincalayu and concentration plants project construction financing in Sijes and Porvenir, in addition to package with TTC, as well as Mizuho refinery facilities at Campo Quijano. Corporate Bank and Japanese The mineral operations state-owned Japan Oil, Gas and produce ulexite (Porvenir) which Metals National Corp (JOGMEC). is predominantly used in the “TTC is our equity partner and manuufacturing of boric acid, sales agent, they were able to hydroboracite (Sijes) a calcium procure low cost project debt from and magnesium borate provides Japanese banks supported by specific benefits for agriculture, JOGMEC,” said Seville. “They were a ceramic and oil and gas applications key part of getting this project done.” and colemanite (Sijes) which is Additional assets sold predominantly into ceramic Another major operation owned by manufacturing operations. Orocobre is Borax Argentina, which The considerable deposits is a long established Argentine at Diablillos and Ratones are w w w. rocobre.com/
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OROCOBRE
Lithium Brine Pumping Into Evaporation Pond
essentially undeveloped and with the exception of the Porvenir mine located in Jujuy, each of Borax Argentina’s operations are located in Salta Province in northern Argentina. “We purchased these run down assets from Rio Tinto in 2012 and are in the process of improving them with modest capital and changes in culture,” said Seville. “However, the big change will be when we do a major expansion of the Borax operations, which will then be followed by minerals and boric acid.” As part of the initiatives being pursued at Borax Argentina, the company is in the process of re-modeling the deposits and undertaking a review into the 9
exploration potential. Demand for boron products remains strong both in the region and around the world. Presently, the main geographic market for Borax Argentina is Brazil, along with Argentina to a lesser extent. Brazil’s economy is among the fastest growing in the world, a trend that is expected to continue, and is fully dependent on imports for its extensive borate needs. Demand is closely tied to the strength of Brazil’s glass, ceramics, construction and agricultural sectors. Major player in the sector In addition to favourable growth trends of the regional segments currently served by Borax Argentina, Orocobre believes there are a vast number of opportunities for Borax
MINING
Argentina to expand into new markets and to develop and supply new products. Borax Argentina has a very high profile in Argentina, in Salta province especially, as it has a strong history of excellent environmental and safety records along with healthy community relations. Safety is a key focus at Orocobre not only encompassing implementation and adherence to procedures and safety training programs but also having officers on shift to reinforce correct behaviours and ensure compliance with procedures. “Safety, environment and shared value are key areas for us,” said Seville. “In safety, we aim for zero accidents as stated in our slogan, “Por nosotros, por nuestras familias, zero accidentes!” “We respect the environment in which we operate as evidenced by our approach to construction, which maximises positive local economic impact and benefits to local communities.” The Olaroz Lithium Facility recently received accreditation from Instituto Argentino de Normalizaciion y Certificacion (IRAM) for quality management, environmental management, as well as safety and occupational healthcare management. Seville strongly believes there are bright days ahead for Orocobre, and expects to see considerable growth within the next year or two. “I see us as a major player in the sector, respected by customers and competitors for the way we run our business,” he said.
Company Information INDUSTRY
Mining HEADQUARTERS
Milton, QLD, Australia FOUNDED
2005 EMPLOYEES
200 REVENUE
$118 million (projected @ nameplate capacity) PRODUCTS/ SERVICES
Orocobre Ltd is building a substantial Argentinian-based industrial chemicals and minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities.
w w w. rocobre.com/
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OROCOBRE 349 Coronation Drive Milton QLD, Australia, 4064 Tel. +61 7 3871 3985 Fax. +61 7 3720 8988 mail@orocobre.com orocobre.com/