15/06/2009 - 11:10

Intermet wins work on Gunson project

15/06/2009 - 11:10

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Gunson Resources will build its processing plant for the Coburn zircon project in Western Australia instead of China as it selects Intermet Engineering as its preferred engineering contractor.

Intermet wins work on Gunson project

Gunson Resources will build its processing plant for the Coburn zircon project in Western Australia instead of China as it selects Intermet Engineering as its preferred engineering contractor.

Intermet, the Perth-based subsidiary of Queensland company Sedgman, will carry out a design definition study of the project over the next four months with an aim to reduce the capital and operating costs.

"Particular focus will be on parts of the Project where identified opportunities or uncertainties exist, one example being the dry mineral separation plant (MSP), the location of which was changed from China to the Coburn mine site during the tendering process," Gunson said.

The company added that subject to the successful completion of study and funding arrangements, construction could start towards the end of next year.

Gunson said the project has already attracted offtake investors, particularly from the Middle East.

The project has also attracted Chinese interest.

In April, Gunson announced it was considering building the plant in WA after one tenderer for the engineering contract said it would be cheaper than China and increased control over product quality and flexibility in marketing to non-Chinese customers.

Three Perth-based firms were competing for the contract

 

 

The announcement is below:

 

Detailed evaluation of the three construction tenders received on 1st May has led to the choice of Sedgman Metals - Intermet Engineering as Gunson's preferred engineering contractor for the Coburn Zircon Project.

Gunson was impressed with the ability of the Perth based subsidiary of ASX listed Sedgman Limited to improve the existing design work completed on the Project since 2003. Sedgman has been commissioned to carry out a Design Definition Study over the next 4 months, the objectives of which are to reduce the capital and operating costs, and risk associated with the execution of the Project. Particular focus will be on parts of the Project where identified opportunities or uncertainties exist, one example being the dry mineral separation plant (MSP), the location of which was changed from China to the Coburn mine site during the tendering process.

Subject to the successful conclusion of the Design Definition Study in October 2009 and completion of funding arrangements shortly afterwards, construction of the Project could begin in the final quarter of 2009, with commissioning commencing towards the end of 2010.

Progress with attracting offtake investors to the Project has been good, in particular in the Middle East. Interest from two well credentialed Chinese groups remains strong, supported by the observation by Chinese zircon market analyst China CCM last week that the zircon price in China was at an all time high.

 

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