TNG has signed an agreement with a jointure venture between Adelaide-based contractor McMahon Services and Clough to provide engineering and construction services at its Mount Peake vanadium project.
Updated: TNG has signed an agreement with a jointure venture between Adelaide-based contractor McMahon Services and Clough to provide engineering and construction services at its Mount Peake vanadium project.
Under the agreement, the JV will review the recently updated definitive feasibility study to evaluate the preliminary construction and contracting services required for the project.
The agreement will assist TNG in making a final decision on its construction plans for the project, as well as support the company to obtain capital.
TNG said the JV would be its preferred contractor for the project and would submit a sole-sourced proposal for the construction works.
The company signed an agreement with McMahon in March 2015 for the civil engineering and construction work at Mount Peake.
An updated DFS was released in November, which indicated a capital expenditure of $853 million.
“We already have a strong and long-standing relationship with our German-based strategic engineering partner, SMS group, and this is agreement with Clough and McMahon is designed to build on and enhance that relationship,” he said
“Having two of Australia’s leading contracting groups as part of our construction consortium is a real positive for the Mount Peake Project.”
Meanwhile the company has also appointed COMO Engineers as lead consultant for project management.
TNG and Como will collaborate under a steering committee model which will see Como provide key personnel for the management of the project and associated infrastructure.
TNG shares finished up 3 per cent at 16 cents each.