Engineering and infrastructure firm RCR Tomlinson has been awarded an engineering, procurement and construction (EPC) contract from Pilbara Minerals for the Pilgangoora Lithium-Tantalum Mine in Western Australia.
The two stage contract carries a total maximum value of nearly A$148m ($111.77m) with a target price of A$138m ($104.22m).
Pilbara Minerals’ 100% owned Pilgangoora Lithium-Tantalum Mine is nearly 120km south of Port Headland in Western Australia’s Pilbara region.
The second stage of the contract is subject to completion of final investment decision (FID) by Pilbara Minerals, which is expected to be complete by March this year.
The awarded contract does not incorporate multiple critical long-lead items received by Pilbara Minerals that includes the filter press, ball mill and HPGR.
RCR managing director and CEO Dr Paul Dalgleish said: “This contract award is a result of our intelligent engineering approach to providing an industry leading technical solution to Pilbara Minerals.
“This win, when added to recent contract awards for the Silvergrass Project and Dugald River Project, firmly places RCR as a market leader in the engineering, procurement and construction of mineral processing plants in the mining and minerals sector. It will also increase RCR’s order book to a new record high of approximately $1.1bn.
“We look forward to delivering the processing plant for this world-class lithium-tantalum project for Pilbara Minerals.”
Under the awarded contract, RCR will hold the responsibility of EPC for the 2Mtpa Lithium-Tantalum Processing Plant, including the wet and dry circuit with concentrator, associated plant and commissioning at Pilbara Mineral’s Pilgangoora Lithium-Tantalum Mine.
RCR will use its Western Australian workshops to provide necessary support to the project.
In the first stage of front-end engineering and design (FEED) is worth A$10.3m ($7.78m) and will start alongside procurement of necessary equipment.
After FID and completion of FEED, Pilbara Minerals holds the option to decide to commit for stage 2 construction, which is planned to start in May 2017.
The processing plant is expected to begin production from the first quarter of next year.
RCR has hired Minnovo and Primero as key technical and engineering subcontractors for the project.