PERTH (miningweekly.com) – Copper developer CuDeco has struck a deal with Sinosteel Equipment and Engineering, which could see the Chinese firm take a bigger stake in the ASX-listed company.
Sinosteel is currently the main contractor for the A$300-million Rocklands copper mineral processing plant, being built at CuDeco’s flagship project in Queensland. Sinosteel is also the engineering, procurement and construction contractor for the supply of the already-installed main 28 MW power station.
CuDeco is responsible for the civil work, as well as the purchase and installation of the electrical cable for the processing plant.
However, the two companies have now inked a memorandum of understanding (MoU), which could see Sinosteel completing the entire electrical installation of the mineral processing facility, including 330 km of electrical cable and distributed control system cables.
Under the MoU, Sinosteel will have the option of converting all or part of the cost for the installation of the electric system into CuDeco shares. This conversion will be subject to board approval from both Sinosteel and CuDeco.
If Sinosteel elects not to take the option, the Chinese firm has offered CuDeco an interest-free deferred payment for the electrical installation, decreasing the immediate cash requirements from CuDeco.
The Rocklands project is expected to include a three-million-tonne-a-year processing plant, and will produce 480 000 t/y of copper/gold, pyrite/cobalt and magnetite concentrate.