GRD hatches half share of Ravensthorpe

BHP Billiton has awarded the engineering, procurement and construction management contract for its $1.4 billion Ravensthorpe nickel project to a joint venture between GRD Minproc and Hatch.

The EPCM contract applies to the Western Australian leg of the project, which involves construction of a new open-cut mine and processing facility and is believed to account for more than three quarters of the total investment.

Construction work, involving up to 1,000 workers, is set to begin later this year, leading to plant start-up in 2006.

The second leg of the project is an extension of the Yabulu nickel refinery in Queensland.

The Ravensthorpe contract is a handy boost for GRD Minproc, a wholly-owned subsidiary of listed company GRD.

GRD Minproc said its share of the Ravensthorpe project would lift its order book from $500 million to $1.1 billion.

Its other major projects include the $400 million treatment plant at the Telfer gold mine, in joint venture with Hatch and Lycopodium.

It is also building a copper project in Zambia and a waste treatment plant in Sydney.

GRD Minproc chief executive Dario Amara said the Ravensthorpe project was the result of two and a half years work by the Hatch joint venture and another three years by GRD Minproc’s technical and project management specialists.

GRD also recently spun off its New Zealand gold mining operation through the recent float of Oceana Gold.

Tasks completed by the joint venture during that period included pre-feasibility and feasibility studies.

The joint venture already has 70 staff and is expected to grow to 250 staff.

The Ravensthorpe project is another win for Canadian company Hatch.

As well as Ravensthorpe and Telfer, it is working with Alcoa on the $440 million upgrade of the Pinjarra alumina refinery.