Heron awards $107m EPC contract at Woodlawn

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 04 May 2017   Posted by admin


The Woodlawn zinc-copper project site near Tarago, NSW.          Image: Heron Resources.


BY CAMERON DRUMMOND


MULTI-commodity focused explorer Heron Resources has awarded a $107m contract for the development of its Woodlawn zinc-copper project in NSW.

The engineering, procurement and construction contract (EPC) went to CIMIC Group subsidiary Sedgman for the development of a 1.5 million tonnes per annum mineral processing plant that would produce zinc, copper and lead concentrates.

The design also included a backfill plant and supporting infrastructure at the project located near Tarago, 250km southwest of Sydney.

More than 250 personnel would be employed at the peak of construction.

Heron Resources managing director Wayne Taylor said the contract award followed the successful undertaking of a FEED program that included improvements on the earlier feasibility study work.

“The nature of the contract, which includes guaranteed maximum price and performance incentives, aligning Sedgman and Heron in delivering an under-budget and early result,” Mr Taylor said.

“We are very pleased to be working with Sedgman as they have demonstrated their ability to provide a superior solution with technical and commercial advantages, having already delivered a reduction in projected capital expenditure.

“The execution of this contract represents another important milestone in Heron’s progress to become an important Australian zinc producer.”

Heron said project engineering was about 20 per cent complete, with onsite work scheduled to commence immediately following the completion of project financing.