RCR wins $138m lithium plant contract
RCR Tomlinson has won a $138 million contract to build a processing plant for Pilbara Minerals’ Pilgangoora lithiumtantalum mine in the Pilbara.
The engineering, procurement and construction contract will be staged subject to PLS making a final investment decision on the project and will have scope to increase to a maximum value of $148 million.
The contract value excludes several critical long-lead items procured by Pilbara Minerals, including the filter press, ball mill and high-pressure grinding roller.
The scope of the work includes the 2mtpa processing plant, including wet and dry circuit with concentrator, associated plant and commissioning.
RCR said it would use its WA workshops to support and perform some of the fabrication required for the project.
The stage one front-end engineering and design component of the contract is worth $10.3 million and will begin immediately along with procurement of major equipment.
Subject to a final investment decision, expected in March, Pilbara Minerals has the option but not the obligation to commit to the stage two construction which is planned to begin in May.
The processing plant is scheduled for commissioning in the December quarter with first production in the beginning of calendar 2018.
RCR has engaged Minnovo and Primero as key technical and engineering subcontractors for the works.
Managing director and chief executive Paul Dalgleish said the contract was the result of the company’s intelligent engineering approach to providing an industry leading technical solution to Pilbara Minerals.
“It will also increase RCR’s order book to a new record high of approximately $1.1 billion,” he said.
PLS managing director Ken Brinsden said the terms of the EPC contract were extremely competitive.
“The combined experience of RCR, Primero and Minnovo has made for a very compelling offering,” he said.
“Primero’s experience in building and operating lithium plants, Minnovo’s design experience, and the construction capability of RCR ensures Pilbara will be well served.
“With project funding discussions well advanced and final environmental approvals now under way, Pilbara looks forward to starting the major construction works by the end of this quarter.”
PLS said it had also awarded a $4.8 million contract to OTOC Australia, for the first stage of the 90km relocation of the 300-room Roy Hill workers camp to a new site at Pilgangoora.
PLS said the remaining contract packages for the Pilgangoora project were either under negotiation or would be the subject of tender processes shortly.
RCR Tomlinson managing director Paul Dalgleish.