Strandline awards fixed-price EPC contract for Fungoni mineral sands processing plant

According to Mining News Pro -Strandline Resources has appointed GR Engineering Services Ltd (GRES) as EPC contractor for the processing plant and facilities at the Fungoni mineral sands project in Tanzania. The lump sum EPC contract comprises construction, installation and commissioning of a new 2 Mt/y mineral processing plant and supporting infrastructure. The fixed cost contained in the contract is in line with the Fungoni DFS released to the market in October 2017.

EPC Contract value is $17.65 million and based on 12 month delivery schedule to first production
Fungoni design is based on modular relocatable infrastructure with modern processing technology which can be re-used at Strandline’s other mineral sands assets in Tanzania
With key mining and environment licences in place, 100% product pre-sold via offtake, strong Government support, EPC contract now executed and project financing underway, Strandline is well positioned to capitalise on the growing mineral sands market.
Customary conditions precedent to the commencement of the EPC contract apply, including achieving a positive final investment decision for Fungoni before March 31 2019. The contract is based on a fixed schedule delivery period of 12 months to Practical Completion and encompasses design, supply, installation and commissioning of:

Mining field unit
Wet concentrator plant, tailings thickener and disposal system
Mineral separation plant
Site water, air and power services
Metallurgical and throughput performance testing following commissioning and handover, and operational support as required during ramp up
Engineering design and technical support associated with Owner’s scope items, which include bulk earthworks, roads, power station, storage shed, workshop, administrative buildings, and ship loader.
Fungoni’s high unit value orebody assemblage and low costs will underpin strong financial returns for Strandline, with a fast payback period and a first quartile revenue-to-cost ratio of 2.7.

Strandline Managing Director Luke Graham said securing this major execution contract for Fungoni with an experienced international EPC contractor marked another milestone in Strandline’s strategy to become a low-cost mineral sands producer in the near-term.

“GRES has partnered with Strandline through the feasibility stage of the project and has committed to deliver a high-quality beneficiation and mineral separation facility, designed to produce worldclass zircon and titanium products,” Graham said.

“With key project approvals already in place for Fungoni and 100% of product contracted under offtake, Strandline’s major focus is now on advancing project funding.”

GRES was involved in the Fungoni DFS and has worked collaboratively with Strandline through 2018 to assist in positioning the project ready for development. GRES has previous project delivery experience in Africa and also other mineral sands projects.

GRES has also been selected by Strandline to undertake the DFS associated with the large-scale Coburn mineral sands project in Western Australia.