PERTH (miningweekly.com) – Services provider Sedgman has been denied a revised progress claim of A$53-million over the Woodlawn base metals project, in New South Wales.
ASX-listed Heron Resources on Friday reported that Sedgman’s revised claim had been rejected by the contract superintendent, only days after its initial A$49.9-million claim of additional costs was also largely rejected.
Heron noted that the A$53-million claim submitted at the start of March included the A$49.9-million claimed previously, which was over and above the agreed upon A$109-million guaranteed maximum price engineering, procurement and construction (EPC) contract sum that formed the basis for the construction of the Woodlawn project.
Heron said on Friday that it remained "extremely disappointed" in the actions of Sedgman in attempting to "circumvent the fundamental principle" of the EPC contract.
For the month of February, the contract superintendent has approved new variations of A$76 082 for work requested by Heron and approved under the formal contract provisions.
First production from the Woodlawn project has been delayed to the second quarter of 2019, with first concentrate now expected for shipment in May.
At steady state, Woodlawn is expected to produce 70 000 t/y of zinc concentrates, 30 000 t/y of copper concentrates and 25 000 t/y of lead concentrates.