May 31, 2016

Major Dugald River construction contract awarded

Major Dugald River construction contract awarded The portal at the Dugald River zinc operation, which is under development.

RCR Tomlinson has been awarded a $73 million contract to construct the processing plant at MMG’s Dugald River project, 65km north-west of Cloncurry.

Work will commence immediately and is scheduled for completion in October 2017, according to a company statement released today.

RCR’s scope of work covers construction and commissioning support for a zinc and lead concentrator and associated plant at the project.

The contract includes project management as well as fabrication and supply of various structural steel, mechanical and electrical and instrumentation components.

RCR managing director and chief executive officer Dr Paul Dalgleish (pictured) said the project built on the company’s position as a leader in the construction of major minerals processing plants.

“We are looking forward to working together with MMG and the local community to successfully deliver these construction works,” he said.

MMG last year announced it would bring the zinc mine into production in 2018 under an updated development plan and at an expected cost of $1 billion.

Cloncurry or Mount Isa suppliers and vendors can register their interest in the Dugald River project by emailing AUDRM.supreg@mmg.com with the subject title: DRM Supplier Registration (and their company name).

They should include information such as contact details, core business and specific area of interest, and previous mining project experience.

Other parties seeking supply work with MMG can provide their details to an online register (see http://www.mmg.com/en/About-Us/Suppliers.aspx)

The updated plan for Dugald River includes a mine production rate of 1.5Mtpa, construction of a concentrator and annual production of about 160,000 tonnes of zinc in zinc concentrate, plus by-products, over an estimated 28-year mine life.

This places Dugald River within the world’s top 10 zinc mines when operational.