PERTH (miningweekly.com) – The Pilgangoora lithium project is on track for commissioning in 2017, after owner Pilbara Minerals awarded the engineering, procurement and construction (EPC) contract for its processing plant to RCR Tomlinson.
The contract for the two-million-tonne-a-year lithium/tantalum plant contains a target cost of A$138-million, with a guaranteed maximum price of A$148-million.
The EPC contract has been awarded in two stages, with the initial Stage 1 being a two-month front-end engineering and design programme, which will determine the final scope of work, timeline and target price.
Pilbara will commit a fixed A$10.3-million to the Stage 1 contract.
The miner said on Wednesday that once project funding had been secured, a final investment decision had been made and Stage 1 had been satisfactorily completed, Pilbara would have the option to commit to the Stage 2 construction, which would be for the balance of the contract price, and planned to start in May 2017.
In addition to the EPC contract, Pilbara has also awarded the first stage contract for a 300-room camp relocation package and the re-establishment works to OTOC Australia.
The Pilgangoora project is expected to deliver 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite.