The lump sum EPC contract comprises construction, installation and commissioning of a new 2 million tonne per annum mineral processing plant and supporting infrastructure.
The fixed cost contained in the contract is in line with the Fungoni Definitive Feasibility Study (DFS) released to the market on 6 October 2017.
Customary conditions precedent to the commencement of the EPC Contract apply, including achieving a positive final investment decision for Fungoni before 31 March 2019.
The EPC Contract is based on a fixed schedule delivery period of 12 months to Practical Completion and encompasses design, supply, installation and commissioning of:
Mining Field Unit;
- Wet Concentrator Plant, Tailings Thickener and Disposal System;
- Mineral separation Plant;
- Site Water, Air and Power services;
- Metallurgical and throughput performance testing following commissioning and handover, and operational support as required during ramp up; and
- Engineering design and technical support associated with Owner’s scope items, which include bulk earthworks, roads, power station, storage shed, workshop, administrative buildings, and ship loader.
Fungoni’s high unit value orebody assemblage and low costs will underpin strong financial returns for Strandline, with a fast payback period and a first quartile revenue-to-cost ratio of 2.7.
Strandline Managing Director Luke Graham said securing this major execution contract for Fungoni with an experienced international EPC contractor marked another milestone in Strandline’s strategy to become a low-cost mineral sands producer in the near-term.
“GRES has partnered with Strandline through the feasibility stage of the project and has committed to deliver a high-quality beneficiation and mineral separation facility, designed to produce world-class zircon and titanium products,” Graham said.
“With key project approvals already in place for Fungoni and 100% of product contracted under offtake, Strandline’s major focus is now on advancing project funding.”
Source: Company Press Release
