MZI awards EPC contract at Keysbrook
PERTH (miningweekly.com) – Mineral sands developer MZI Resources has executed a A$54.6-million engineering, procurement and construction contract for its Keysbrook project, in Western Australia, with project house GR Engineering Services.
The contract was for the delivery of the Keysbrook mine site and an upgrade to the existing mineral sands separation plant, which ASX-listed Doray Minerals owned.
GR Engineering told shareholders on Wednesday that the start of work would remain subject to the satisfaction of certain conditions precedent, including MZI securing financing and offtake arrangements.
The Keysbrook project was currently slated to produce 91 000 t/y of product from 110 000 t/y of dry heavy mineral concentrate, over a five-and-a-half-year mine life. The project was expected to require a capital investment of A$61.9-million, while operating costs had been estimated at A$422/t of product.
MZI recently inked finance arrangements worth some A$110-million for the development of the Keysbrook project.
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