Orbite updates construction of HPA facility

Orbite Aluminae Inc., today provides its second update on the construction and optimization activities of its high purity alumina (“HPA”) production facility located in Cap-Chat, Québec.

As communicated in its January 29 HPA project update, Orbite had commenced the design review and detailed engineering with Seneca, as well as project management and control activities with Groupe Alphard. Orbite continues to work towards a 12 month execution timeline, with commissioning in December 2014 and commercial operations to commence in January 2015. Full production capacity at 3 tpd is anticipated for Q1 2015.

Glenn Kelly, CEO of Orbite, stated, “We are pleased with the progress made to date on our HPA project at Cap-Chat. Several project elements, such as the design review, have now been completed. We are on schedule and are progressing well towards our twelve month execution timeline. Additionally, following positive calcination and decomposition testing results with potential suppliers in Asia and Europe, we have been able to conclude negotiations and selected Outotec to deliver the new calcination system. The unit is expected to arrive in August, slightly ahead of our earlier communicated schedule.”

Progress to date is as follows:

Cap-Chat Operations

× Operating conditions for the HPA purification steps were optimized through a series of tests at Orbite’s Technology Development Center (“TDC”).

× The HPA facility is completing a production campaign, where optimized operating conditions, developed at the TDC, were tested and validated. The new operating parameters will be incorporated into the detailed facility design.

× Preliminary results are very promising (quality, process conditions and productivity) and are in line with pilot testing done at the TDC.

× The product will be used to supply sample sets for evaluation by potential customers. Engineering

× Seneca has finalized the mass and energy balances, project scope definition and the design basis.

× Seneca has also completed a survey of Orbite’s installations at its Cap-Chat facility to evaluate changes needed, such as equipment modification/relocation, and infrastructure capacities (electricity, steam, cooling water, and building ventilation).

× P&IDs (Piping & Instrumentation Diagrams) review is completed and will be issued for design.

Project Management

× Alphard has completed the work break-down structure to align budget, schedule and cost tracking.

× Calcination equipment installation, sequence and schedule has been optimized and the general project schedule has been refined as follows;

§ Detailed Engineering Completed - May
§ Issue of Procurement and Construction packages for bid – June
§ Start of Construction – July
§ Calcination System Delivery – August
§ Plant commissioning including cold and hot start up – November and December
§ Commercial Operations – January

Procurement

× HPA decomposition and calcination tests were completed at two calciner system supplier piloting centers in Europe and Asia.

× Based upon technical & economic evaluation of both offers, Outotec of Germany was selected as the preferred supplier and the supply contract has been awarded.