WA may be cheaper than China: Gunson

West Perth-based Gunson Resources will consider building its zircon processing plant in Western Australia instead of China following recommendations that it will save money.

The suggestion comes as the tendering process for the Coburn mineral sands plant soon draws to an end, with the deadline extended by two weeks to May 1.

Three Perth-based engineering firms are competing for the tender.

Gunson had previously said it was considering building the mineral separation plant in China however a recommendation by one engineering firm suggested the plant be built near the mine.

The unnamed firm said Gunson could save money in supervision and engineering costs during construction, have increased control over product quality and flexibility in marketing to non-Chinese customers.

The firm added that there would be a simplification of cash flow and tax accounting if the plant were to be built in WA.

The reasons were also backed up by an unnamed Chinese engineering company, Gunson said.

A final decision on the preferred contractor is expected in June.

Meantime, Gunson said it is continuing discussions with potential investment partners in China and the Middle East over the project.

Shares in Gunson were unchanged at 10 cents at 12:59 AEST.