GR Engineering wins Thunderbird deal
SHEFFIELD Resources has awarded a $366.3 million contract to GR Engineering at its Thunderbird mineral sands operations between Broome and Derby in WA.
Under the contract, GR Engineering will design, procure and construct a 7.5 million tonne per annum mineral processing plant and associated facilities at Thunderbird.
The project was expected to take two years, beginning in the second quarter of 2019, after the wet season.
GR Engineering would also deliver engineering design, procurement, construction, commissioning and testing of all process and non-process infrastructure for the project, including a wet concentrate plant, mineral separation plant, low temperature roasting plant, administration buildings, bore fields and high voltage power distribution, in addition to all civil scope items.
GR Engineering managing director Geoff Jones said the contract represented an important milestone in the development of the world-class Thunderbird project.
“GR Engineering has welcomed the opportunity to contribute towards bringing the project to an advanced pre-execution phase and is now committed to progressing its safe and successful delivery for Sheffield,” Mr Jones said.
Sheffield previously engaged GR Engineering as its preferred contractor to progress early works on the project in October 2017.
The miner also secured a $240 million seven-year loan from Taurus Funds, which would be used to reduce Sheffield’s operating costs by at least $7.5 million every year over a 42-year mine life.
Sheffield managing director Bruce McFadzean said the agreements were a tremendous result for shareholders as they would substantially de-risk Thunderbird and put the company in a strong position to move into construction.
“Thunderbird has now secured $335 million of loan facilities to enable the project to proceed, including long tenor infrastructure loans from the Federal Government,” Mr McFadzean said.
The village at Thunderbird was under construction as part of Sheffield’s approved early works.