Sedgman, a member of the CIMIC Group, has secured an AUD107M ($79.2M) engineering, procurement and construction (EPC) contract from Heron Resources for the Woodlawn project in New South Wales, Australia.
Sedgman will be responsible for the construction of a 1.5M tonne per annum mineral processing plant to enable the processing of underground and tailings ore to produce zinc, copper and lead concentrates.
The scope of the work also includes a paste backfill plant and supporting infrastructure, including an administration complex with offices, change rooms, car parking, workshops, laboratory, water treatment, infrastructure and power supply.
The EPC contract award comes after the launch of a front-end engineering design (FEED) program in October 2016 following the completion of the project feasibility study.
Wayne Taylor, Heron Resources managing director and CEO, said: “This contract award follows the successful undertaking of a FEED program that included a value engineering approach incorporating significant improvements on the earlier feasibility study work.
“The nature of the contract, which includes guaranteed maximum price and performance incentives, aligning Sedgman and Heron in delivering an under-budget and early result.
“We are very pleased to be working with Sedgman as they have demonstrated their ability to provide a superior solution with technical and commercial advantages, having already delivered a reduction in projected capital expenditure.”
Onsite work is expected to begin immediately after conclusion of the project financing, and acceptance testing is scheduled for late 2018. The project is anticipated to lead to the creation of over 250 jobs at the peak of the construction phase.
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