JOHANNESBURG (miningweekly.com) – Australian lithium developer Pilbara Minerals appointed project management consultancy Engenium to assist in the delivery of the Pilgangoora lithium/tantalum project, in Western Australia, working as part of an integrated owner’s project management team.
Pilbara has also made significant progress with the process plant design and construction package and mining contracts for the project, shortlisting key contracting groups to participate in competitive pricing negotiations. Both packages are expected to be progressed towards final contract award over the next three months.
To accelerate the selection of the engineering, procurement and construction (EPC) contractors for the plant, the company has also agreed that it will facilitate a competitive early contractor involvement (ECI) arrangement, which will be a partially funded exercise between three contracting parties and/or associated groups.
“It was very pleasing to see throughout the ECI process how many talented and highly capable organisations were available and willing to work with us on the processing plant.
“By adopting an ECI arrangement, we will be able to compress the timeframe for the EPC selection process, allowing us to achieve our key objective of commissioning the project in the fourth quarter of 2017, while still maintaining a highly competitive process that ensures we get the best possible outcome for the project and our shareholders,” commented MD Ken Brinsden.
Six mining contractors and two standalone drill and blast contractors submitted pricing that has contributed to the definitive feasibility study cost model.
As a result of this work, the company is further considering its strategy to shortlist mining contractors to participate in the upcoming Pilgangoora mining contract tender.
The Pilgangoora project, located about 120 km from Port Hedland, has been confirmed as the second-largest spodumene and tantaline project in the world and will be developed into one of the world’s largest lithium mines.
About 40% of the mine’s 330 000 t/y production will be supplied to a Chinese company, General Lithium, under a six-year, 140 000 t/y offtake agreement, set to start in the first quarter of 2018.