Heron Resources Limited has awarded an engineering, procurement and construction contract – with a guaranteed maximum price of $107 million – to CIMIC Group member Sedgman for works on the Woodlawn Project in New South Wales.
“This contract award follows the successful undertaking of a FEED (front-end engineering design) 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,” heron Resources Managing Director and CEO Wayne Taylor.
Sedgman’s scope of works will include the construction of a 1.5 million tonne per annum mineral processing plant which will enable the processing of underground as well as tailings ore in order to produce zinc, copper and lead concentrates. Works will also comprise of a paste backfill plant and supporting infrastructure on the mine site – located 250-kilometres south west of Sydney, near Tarago.
“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,” Mr Taylor said.
The Woodlawn process treatment facility is going to be delivered in stages which aligns with mine development works. Supporting infrastructures for this project will include an administration complex comprising of offices, change rooms, car parking, workshops, laboratory, water treatment infrastructure and power supply.
The project is expected to employ over 250 workers during peak construction, with acceptance testing projected for late 2018.
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Source: Heron Resources