16/10/2009 - 15:28

Lynas hires United Group for Mt Weld

16/10/2009 - 15:28

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Lynas Corporation has selected United Group as its lead engineering contractor for its Mt Weld rare earths project in WA, after previous ongoing delays forced then contractor, Ranhill WorleyParsons, to demobilise its resources.

Lynas Corporation has selected United Group as its lead engineering contractor for its Mt Weld rare earths project in WA, after previous ongoing delays forced then contractor, Ranhill WorleyParsons, to demobilise its resources.

 

The announcement is below:

 

Lynas Corporation Limited (ASX: LYC) provides the following update concerning the Lynas rare earths project.

Following receipt this week of net proceeds in the amount of approximately A$204 million from the unconditional placement and the institutional entitlement offer components of the equity raising announced on 29 September 2009, Lynas is now finalizing plans for remobilization to site and recommencement of project works.

Specifically, these plans relate to the engagement and mobilisation of a new team to complete remaining engineering activities.

Due to the ongoing delays associated with FIRB review of the proposed CNMC transaction, Ranhill WorleyParsons (RWP) demobilised all engineering, procurement and construction project resources and re-allocated them to other projects. Subsequently, RWP has been unable to remobilise the same team to recommence engineering.

In addition, during the Project suspension, Lynas undertook a high level review of the engineering conducted to date. This review was undertaken by a consortium headed by Mintrex, and including Abesque Engineering (AEC), BEC Engineering (BEC) and United Group Limited (UGL).

Lynas requested various parties to submit proposals to complete the remaining engineering works. Following a review of the proposals received, Lynas has decided to engage United Group Limited as Engineering Contractor, and to source selected services from RWP and other parties.

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