Gindalbie Metals has today awarded two, key project management and construction services contracts, valued at a combined $140 million, for its Karara iron ore project to WorleyParsons and AMEC Minproc.
Gindalbie Metals has today awarded two, key project management and construction services contracts, valued at a combined $140 million, for its Karara iron ore project to WorleyParsons and AMEC Minproc.
Gindalbie's joint venture company Karara Mining Ltd has formalised a contract with WorleyParsons for the delivery of project management services for the Karara project development.
WorleyParsons' involvement in the project began in February 2008 during the feasibility assessment phase, and has been working closely with Gindalbie and the project development team (PDT), which has been established within KML.
Due to the focused 'hands on' approach of the KML managers, a project management services contract was chosen in preference to the traditional engineering procurement and construction management (EPCM) structure.
This arrangement gives the Karara PDT the ability to source and select groups with the best expertise for individual areas of work for the engineering, design and construction phases of the mine and infrastructure.
Under the final structure, overall responsibility for the delivery of the Karara project is being managed in-house by the PDT with WorleyParsons, as a major global engineering services group, providing the majority of the required personnel, skills and systems to construct the project.
Using a similar model, KML has also awarded a construction management services contract to AMEC Minproc, to also work as part of the integrated project management team, to manage construction of the Karara magnetite concentrator and associated processing plant facilities.
Detailed engineering and design for the Karara concentrator is continuing with the 60 per cent model review scheduled for the current Quarter. Design for the concrete foundations is well advanced to allow the timely commencement of construction.
"The agreement with WorleyParsons crystallises a slightly different arrangement which we have put in place for managing the construction of the Karara Project," commented Gindalbie's managing director Garret Dixon.
"While it may be a bit different from a normal EPCM, it certainly suits the management team, which has a strong contracting background. We have been working with WorleyParsons for some time and, this contract combines the best elements of a straight PMC approach with in-house project management to ensure the most stringent possible controls on overall project development schedules and costs," he added.
"A similar philosophy has been incorporated in our contract with AMEC Minproc," Mr Dixon continued. "These key engineering services and construction contracts have been structured to ensure that we have the best possible team available whose interests and focus are aligned with Karara and the PDT to ensure a successful overall outcome."
WorleyParsons chief executive John Grill said: "This project has a number of similarities to other projects successfully delivered by WorleyParsons in the Western Australia iron ore sector and we value the opportunity to use our expertise in supporting Karara in this exciting project development."
Malcolm Brown, President AMEC Minproc, said: "We welcome the opportunity to bring AMEC Minproc's wealth of experience in construction management of large scale mineral processing facilities to assist KML in successfully developing their Karara Project".
