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MagIndustries, East China Engineering sign $497m development deal

11th July 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – TSX-listed MagIndustries on Wednesday said an earlier framework agreement with East China Engineering Science and Technology for the development of the proposed Africa-based Mengo potash project had progressed into a $497-million general construction contract.

MagIndustries is aiming to develop a 1.2-million-tonne-a-year potash operation in the Republic of Congo.

“The signing of the general contract is a very important milestone for the company toward achieving its ambitions to be a major potash producer for worldwide markets,” MagIndustries said in a statement.

East China Engineering would provide services related to the planning, construction and performance of the proposed mine.

It would be responsible for the overall planning and project management, procurement, construction, installation and testing of equipment, sourcing of materials and integrating systems, as well as commissioning the operation.

MagIndustries pointed out that preconstruction started in March.

The completion and handover of the project was scheduled for March 31, 2016, subject to the conclusion of a project finance package.

About $24.5-million – a nonfixed component of the project cost – would be available as an incentive for timely completion and quality of work.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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