Iluka awards $30m EPCM contract to Clough

Clough Limited has been awarded a $30 million contract for Iluka Resources Limited's Murray Basin Stage 2 Development, which is due for completion in early 2009.

The award follows the completion of a feasibility study, which was successfully undertaken by Clough on behalf of Iluka.

The annoucement is pasted below:

Clough Limited today announced that it has been awarded a $30 million engineering, procurement and construction management (EPCM) contract for Iluka Resources Limited's Murray Basin Stage 2 Development, which is located near Ouyen, Victoria and includes upgrades to Iluka's existing mineral separation plant (MSP) in Hamilton.

The award follows completion of a definitive feasibility study, which was successfully undertaken by Clough on behalf of Iluka.

John Smith, Clough Chief Executive Officer said "We will deploy an experienced project management team and the Clough integrated project management system to support the delivery of this important project for Iluka and the team will work closely with Iluka's process experts".

Iluka's Board recently approved capital expenditure of $209 million for the second stage development of Iluka's operations in the Murray Basin, Victoria.

The Stage 2 Development will involve mineral sands mining and concentrating operations in the Ouyen area of Victoria, with heavy mineral concentrate (HMC) trucked to Hamilton for separating into final products of rutile and zircon, for export through the Port of Portland.

Subject to the project's environmental and government approvals, Iluka plans to commence production from Stage 2
in the first quarter of 2009.

The EPCM contract, to be managed within Clough's Capital Project Business Line, will include construction of a re-locatable mining unit weighing approximately 900 tonnes and concentrator plants, together with associated infrastructure.

The Kulwin ore body will be mined using a mobile mining unit because of the geometry of the 11 kilometre long, 100
metre wide deposit.