Wolf increases capex estimate for UK project
PERTH (miningweekly.com) – Tungsten developer Wolf Minerals has upped the expected development cost of its Hemerdon project, in the UK, from its original estimate of £104-million to £123.2-million.
The initial capital cost estimate was made in the 2011 definitive feasibility study.
Since that time, Wolf has awarded a £75-million fixed price, fixed term engineering, procurement and construction contract to GR Engineering Services for the design and construction of the processing plant, as well as a £85-million mining services contract to CA Blackwell.
Wolf said on Monday that the updated capital cost for the three-million-tonne-a-year project reflected the detailed design work that has already been undertaken, and accounted for cost variances since the initial costs were estimated in the definitive feasibility study.
The project remains on schedule to start earthworks this month, with construction scheduled during the second quarter of 2014. Tungsten production would start in 2015.
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