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Wolf starts construction at Hemerdon

12th June 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Dual-listed Wolf Minerals has pulled the trigger on its Hemerdon tungsten and tin project, in England, appointing GR Engineering in a A$123-million engineering, procurement and construction (EPC) contract.

Wolf has also conducted the first draw-down from a $82-million funding package provided by Resource Capital Fund (RCF), which was finalised in May.

The fixed price, fixed term EPC contract was for the design, construction and commissioning of a three-million-tonne-a-year tungsten and tin minerals processing plant, as well as associated infrastructure, to form the key component of the Hemerdon project.

The contract term was for 24 months, and GR Engineering noted that work would start immediately.

“We are delighted to formally commence development of the Hemerdon project. The first draw-down of the funding package provided by RCF represents a major milestone for the company and our plans to bring the project into production as a world-class tungsten and tin mining operation,” said Wolf MD Humphrey Hale.

He added that the funds would allow GR Engineering to start the EPC contract at Hemerdon.

The Hemerdon mine was expected to produce some 345 000 t/y of tungsten trioxide and around 450 000 t/y of tin in concentrate.

Wolf was working to extend the life of the project while maintaining its production profile. Work was being undertaken to evaluate larger pits and explore underground options.

Edited by Creamer Media Reporter

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