Paladin Resources Ltd has surprised by selecting a South African engineering group to oversee the $A230 million (US$185 million) development of its Kayelekera uranium project in Malawi, rather than Perth firm GRD Minproc Ltd.
Minproc had been considered the front runner for the engineering contract after it successfully completed the bankable feasibility study for Kayelekera and was engineering contractor for Paladin’s recently completed Langer Heinrich mine in Namibia.
Paladin managing director, John Borshoff, said South Africa-based Engineering and Projects Company, part of the Aveng Group, was selected for the Malawi project mainly because of the depth of the group, which also has mining, manufacturing and construction arms.
Mr Borshoff added that EPC’s extensive African experience and certain technologies it had would be important in the Malawi project.
He said recent commissioning problems at Langer Heinrich were not a factor in the decision.
Paladin announced last month that it would not reach its production targets at Langer Heinrich but was expected to reach full production of 2.6 million pounds per annum by January 2008.
While Minproc was not awarded the Kayelekera contract, Mr Borshoff said Paladin was still working with Minproc on Langer Heinrich.
He said there was a strong possibility Minproc would be awarded the contract to manage the planned expansion of Langer Heinrich to 3.7 million pounds per year, which is scheduled to happen next year.
Separately, Minproc has been successful in winning several contracts for other mining projects in Africa.
This year it has been awarded contracts for four African projects, namely a Freeport-McMoran copper project in Congo, the redevelopment of Resolute Mining Ltd’s Syama gold mine in Mali, Albidon Ltd’s Munali nickel project in Zambia and most recently Platinum Australia Ltd’s Smokey Hills platinum project in South Africa.
