The EPC contract follows a front-end engineering design (FEED) programme that commenced in October 2016 after the completion of the Woodlawn project feasibility study.
The scope of the EPC contract is for a 1.5 million tonne per annum mineral-processing plant to enable the processing of both underground and tailings ore to produce zinc, copper and lead concentrates. The design also includes a paste backfill plant and supporting infrastructure at the project site, located near Tarago, 250km south-west of Sydney, Australia.
The EPC contract is in the form of a guaranteed maximum price (GMP) of A$107 million (US$79 million) with cost under-run and performance incentives to support an early completion and under-budget result.
Heron Resources’ managing director and CEO Wayne Taylor said: “This contract award follows the successful undertaking of a FEED programme that included a value engineering approach incorporating significant improvements on the earlier feasibility study work.
“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. The execution of this contract represents another important milestone in Heron’s progress to become an important Australian zinc producer.”
Full project engineering is approximately 20% complete (to March), and on-site work is scheduled to commence immediately following the completion of project financing. More than 250 personnel will be employed on the construction project at its peak, with acceptance testing (production) scheduled for late 2018.