BRISBANE, Australia,
March 23, 2017 /PRNewswire/
-- Orocobre Limited (ORE:ASX, ORL:TSX) (Orocobre or the
Company) wishes to provide an update on Value Added Tax (
''VAT'') recovery at Sales de Jujuy S.A. ( ''SDJ'') in Argentina.
The Company is pleased to advise that the process of VAT
recovery has accelerated and become a routine process over recent
months. Approximately US$2M of
refunds have been received by SDJ this week. Taking into account
VAT received over the past 11 months, including such amount
received this week, approximately US$6M has been received by SDJ to date. Further
refunds of approximately US$6.5M have
been approved by the Argentine tax authorities and are expected to
be received in the near future.
Refund amounts in US$ are quoted as approximate given they are
Argentine Peso denominated.
For more
information, please contact:
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Richard
Seville
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Andrew
Barber
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Managing
Director
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Investor Relations
Manager
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T: +61 7 3871
3985
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T: +61 7 3871
3985
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M: +61 419 916
338
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M: +61 418 783
701
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E:
rseville@orocobre.com
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E:
abarber@orocobre.com
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About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange
and Toronto Stock Exchange (ASX:ORE) (TSX:ORL), and 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 in the Puna
region of northern Argentina. The
Company has built, in partnership with Toyota Tsusho Corporation
and JEMSE, the first large-scale, greenfield brine based lithium
project in approximately 20 years at the Salar de Olaroz with
planned production of 17,500 tonnes per annum of low-cost battery
grade lithium carbonate.
The Olaroz Lithium Facility has a low environmental footprint
because of the following aspects of the process:
- The process is designed to have a high processing recovery of
lithium. With its low unit costs, the process will result in low
cut-off grades, which will maximise resource recovery.
- The process route is designed with a zero liquid discharge
design. All waste products are stored in permanent impoundments
(the lined evaporation ponds). At the end of the project life the
ponds will be capped and returned to a similar profile following
soil placement and planting of original vegetation types.
- Brine is extracted from wells with minimum impact on freshwater
resources outside the salar. Because the lithium is in sedimentary
aquifers with relatively low permeability, drawdowns are limited to
the salar itself. This is different from halite hosted deposits
such as Salar de Atacama, Salar de
Hombre Muerto and Salar de Rincon
where the halite bodies have very high near surface permeability
and the drawdown cones can impact on water resources around the
Salar affecting the local environment.
- Energy used to concentrate the lithium in the brine is solar
energy. The carbon footprint is lower than other processes.
- The technology developed has a very low maximum fresh water
consumption of <20 l/s, which is low by industry standards.
- Sales de Jujuy S.A. is also committed to the ten principles of
the sustainable development framework as developed by The
International Council on Mining and Metals. The company has an
active and well-funded "Shared Value" program aimed at the long
term development of the local people.
The Company continues to follow the community and shared value
policy to successfully work with suppliers and the employment
bureau to focus on the hiring of local people from the communities
of Olaroz, Huancar, Puesto Sey, Pastos Chicos, Catua, Susques,
Jama, El Toro, Coranzulí, San Juan
and Abrapampa. The project implementation is through EPCM
(Engineering, Procurement and Construction Management) with a high
proportion of local involvement through construction and supply
contracts and local employment. The community and shared value
policy continues to be a key success factor, training local people
under the supervision of high quality experienced
professionals.
The Company also wholly-owns Borax Argentina, an important
regional borate producer.
For further information, please visit
www.orocobre.com
Caution Regarding Forward-Looking Information
This
news release contains "forward-looking information" within the
meaning of applicable securities legislation. Forward-looking
information contained in this release may include, but is not
limited to, the completion of commissioning, the commencement of
commercial production and ramp up of the Olaroz Lithium Facility
and the timing thereof, the cost of construction relative to the
estimated capital cost of the Olaroz Lithium Facility, the meeting
of banking covenants contained in project finance documentation,
the design production rate for lithium carbonate at the Olaroz
Lithium Facility, the expected brine cost and grade at the Olaroz
Lithium Facility, the expected operating costs at the Olaroz
Lithium Facility and the comparison of such expected costs to
expected global operating costs, the estimation and conversion of
exploration targets to resources at the Olaroz Lithium Facility,
the viability, recoverability and processing of such resources, the
potential for an expansion at the Olaroz Lithium Facility, the
capital cost of an expansion at the Olaroz Lithium Facility; the
future performance of the relocated borax plant and boric acid
plant, including without limitation the plants estimated production
rates, financial data, the estimates of mineral resources or
mineralisation grade at Borax Argentina mines, the economic
viability of such mineral resources or mineralisation, mine life
and operating costs at Borax Argentina mines, the projected
production rates associated with the borax plant and boric acid
plant, the market price of borate products whether stated or
implied, demand for borate products and other information and
trends relating to the borate market, taxes including recoveries of
IVA, royalty and duty rate and the ongoing working relationship
between Orocobre and the Province of Jujuy, TTC and Mizuho Bank.
Such forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking information, including but not limited to
the risk of further changes in government regulations, policies or
legislation; the possibility that required concessions may not be
obtained, or may be obtained only on terms and conditions that are
materially worse than anticipated; that further funding may be
required, but unavailable, for the ongoing development of the
Company's projects; fluctuations or decreases in commodity prices
and market demand for product; uncertainty in the estimation,
economic viability, recoverability and processing of mineral
resources; risks associated with weather patterns and impact on
production rate; risks associated with commissioning and ramp up of
the Olaroz Lithium Facility to full capacity; unexpected capital or
operating cost increases; uncertainty of meeting anticipated
program milestones at the Olaroz Lithium Facility; general risks
associated with the further development of the Olaroz Lithium
Facility; general risks associated with the operation of the borax
plant or boric acid plant; a decrease in the price for borates
resulting from, among other things, decreased demand or an
increased supply of borates or substitutes, as well as those
factors disclosed in the Company's Annual Report for the year ended
June 30, 2016 filed at
www.sedar.com.
The Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable.
Assumptions have been made regarding, among other things: the
timely receipt of required approvals and completion of agreements
on reasonable terms and conditions; the ability of the Company to
obtain financing as and when required and on reasonable terms and
conditions; the prices of lithium, potash and borates; market
demand for products and the ability of the Company to operate in a
safe, efficient and effective manner. Readers are cautioned that
the foregoing list is not exhaustive of all factors and assumptions
which may have been used. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/orocobre-provides-update-on-vat-recovery-at-sales-de-jujuy-sa-300428916.html
SOURCE Orocobre Limited