Good news day for Orocobre’s Argentine project
28th Jun 2012
JUNE 28 – It’s been a big 24 hours for Australian-based Orocobre in the proposed development of its flagship Olaroz lithium-potash project in Jujuy Province, north-west Argentina.
Chairman James Calaway, CEO Richard Seville and GM Jose de Castro have met with Argentina’s President Cristina Kirchner, Jujuy Governor Eduardo Fellner, national and provincial government representatives and local communities to outline their development plans.
The meeting followed confirmation of official approval from a provincial expert committee for the project.
At the meeting itself, details were announced of a binding agreement between Orocobre and recently established provincial mining investment company Jujuy Energia y Mineria Sociedad del Estado (JEMSE) to take up 8.5% equity in the Olaroz project.
JEMSE will meet its share of construction funding from money advanced by Orocobre against its share of future dividends. In addition, it will provide key construction assistance and take a leading role in liaising with municipal, provincial and national government departments and customs authorities.
Richard Seville says the project approval and JEMSE agreement are the culmination of almost five years of determined work, and are a major building block for progressing the large-scale brine project from design to construction and operations.
He says the company will now focus on completing proposed financing with Mizuho Bank, loan guarantees with JOGMEC and finalising definitive agreements with project partner Toyota Tsusho Corporation.
To cap things off, Orocobre expects the mining concessions to be granted this week, allowing the formal approval process to start. “All being well, we anticipate the financing process will complete together with the investment decision by Toyota Tsusho in September,” Seville said.
Engineering work on ponds, borefields and related infrastructure is complete, so contracts can be awarded the construction start immediately.
Commercial production is forecast to begin in 2014, with Olaroz due to produce 16,400tpa battery grade lithium carbonate and 10,000tpa potash over 40 years.
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- VIEW FROM THE WEST END
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- Horrid Henry
