OZ Minerals has awarded a contract for project management services to KBR for the development of the Carrapateena copper-gold project, 160km north of Port Augusta in South Australia.
As part of the contract, KBR is required to provide professional services during the execution phase of the project.
OZ Minerals previously worked with KBR, receiving assistance to finalise its early contractor involvement strategy and associated feasibility study activities.
In August, OZ Minerals board approved the development of Carrapateena mine.
KBR Asia-Pacific president Greg Conlon said: “With an operating life of at least 20 years, Carrapateena represents a major growth opportunity for South Australia with around 1,000 jobs created from construction through to production and longer term business and employment opportunities for communities in the region.”
Based on feasibility study update, the mine’s net present value (NPV) increased by 18% to $910m.
Meanwhile, ore reserve tonnage estimate went up by 13% to 79Mt with copper equivalent grade of 2.31%.
The project is expected to return average annual net cash-flow of around $265m over a mine-life of 20 years.
Commissioning of the project is scheduled to begin in the fourth quarter of 2019.
KBR intends to include the expected revenue from the contract in its fourth-quarter backlog of unfilled orders for its engineering and construction business line for this year.