Delays in CVRD's giant Niquel do Vermelho nickel project in Brazil will have no material impact on the financial results of engineering contractor GRD Minproc, the company stated today.
The Brazilian mining company was forced to defer parts of the project after having difficulty obtaining environmental licences and permits, Perth's GRD Minproc announced today.
CVRD said the delays did not reflect the economics of the project.
"CVRD recognises the significant positive performance of GRD Minproc and its consortium members to date," GRD said in an announcement
GRD Minproc was awarded the engineering, procurement and construction management (EPCM) contract for the project in late December 2005.
GRD chief executive Cliff Lawrenson said a revised schedule was being determined.
"GRD Minproc has developed a solid relationship with CVRD, and we will continue to build on this foundation to facilitate the delivery of CVRD's significant nickel developments," he said.
"Vermelho has always been a long term project and the delays are not likely to have a material impact on current and future financial results."
The news came less than a month after Perth engineering consultants, East Perth's Lycopodium Ltd, advised of a delay in development of Newmont Mining's Akyem gold mining project, following problems with securing permits and resolving nation-wide power shortages.
Lycopodium, which had budgeted $15 million in revenue for the 2006-07 financial year, said it believed there would be sufficient work available to replace the deferred revenue for the year.
