Strandline appoint EPC contractors

Primero Group and Downer EDI have signed up to help build Western Australia’s next big mineral sands development, near Shark Bay (reports MiningNews).
2nd October 2020
Resources Rising Stars

Primero Group and Downer EDI have signed up to help build Western Australia’s next big mineral sands development, near Shark Bay (reports MiningNews).

Strandline Resources said the appointment of Primero and Downer's Mineral Technologies subsidiary as its preferred contractors to design and build the core processing plant infrastructure for the project was a big step ahead for the A$260 million Coburn project.

The scope of the $150 million project includes the detailed engineering, procurement, construction, and commissioning of the processing facilities, including the wet concentration and mineral separation plants, and associated processing circuits.

The EPC contract is based on the delivery of a turnkey solution, and built on a fixed price, fixed schedule arrangement.

It follows a tender process and eight weeks of early contractor involvement that focussed on optimising delivery strategies and designs based on using modern processing technologies to beneficiate the heavy minerals, such as ilmenite, leucoxene, rutile, zircon and monazite, and reject the lighter minerals.

A heavy mineral concentrate will then be sent from the wet plant to the mineral separation plant, which will deliver the final products for delivery to its offtake partners, some of world's largest mineral sands consumers across America, Europe, and China.

The trio has now moved into front-end engineering and design phase.

Strandline says appointing a contractor is one of its conditions required to finalise project funding, including its $150 million loan with the Northern Australia Infrastructure Fund.

Pending equity funding negotiations, Strandline hopes to begin development later this year, with a recent definitive feasibility study confirming the viability of the project with earnings of $1.9 billion over 22 years with high margins and low operating costs.

First production should follow in 2022.

The company, which recently raised $18.5 million to help secure some long-led items, recently appointed the $23 million road access and bulk earthworks contract to civil and mining contractor Macmahon Holdings.

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