GR Engineering Services Limited (ASX:GNG) (GR Engineering) is pleased to announce that it has entered into an engineering, procurement and construction contract with Thunderbird Operations Pty Limited (Contract), a wholly owned subsidiary of Sheffield Resources Limited (ASX:SFX) (Sheffield) for the engineering design, procurement and construction of a 7.5Mtpa mineral processing plant and associated facilities for the Thunderbird Mineral Sands Project (Project), located between Broome and Derby in Western Australia.
The Contract sum is approximately $366.3 million. The commencement of work under the Contract remains subject to GR Engineering being issued with a full notice to proceed, which is dependent on Sheffield satisfying remaining financing conditions ahead of a final investment decision being made to pursue the development of the Project.
Entry into the Contract follows GR Engineering having worked closely with Sheffield since being engaged as preferred tenderer in October 2017 to progress early works on the Project. GR Engineering has substantially progressed detailed design and procurement activities during this time. Delivery is scheduled to occur over approximately two years from the date of site mobilisation, which is anticipated in the second quarter of calendar year 2019, following the wet season.
GR Engineering’s scope of work under the Contract extends to the engineering design, procurement, construction, commissioning and testing of all process and non-process infrastructure for the Project, including a wet concentrate plant, mineral separation plant, low temperature roasting plant, administration buildings, bore fields and high voltage power distribution in addition to all civil scope items. GR Engineering will also provide operations support for a six month term post-completion.
Commenting on the entry into the Contract, GR Engineering’s Managing Director, Geoff Jones, said: “This Contract represents an important milestone in the development of the world-class Thunderbird Mineral Sands Project. GR Engineering has welcomed the opportunity to contribute towards bringing the Project to an advanced pre-execution phase and is now committed to progressing its safe and successful delivery for Sheffield.”
GR Engineering will inform the market of material developments in respect of the Contract, including the receipt of a full notice to proceed.
ASX News Release 12/11/2018
To read more about the Thunderbird Mineral Sands Project, click here.