Diversified Australian engineering and infrastructure company RCR Tomlinson Ltd has been awarded a contract by MMG Ltd for the construction of a processing plant at MMG’s Dugald River project which is subject to MMG finalising financing arrangements on the project. The contract is valued at approximately A$73 million and work will commence immediately and is scheduled for completion in October 2017.
RCR’s scope of work includes project management, fabrication and supply of various structural steel, mechanical and E&I components, construction (SMP and E&I) and commissioning support for a zinc and lead concentrator and associated plant, at the project near Cloncurry in Queensland.
MMG is responsible for the plant design and the supply of the key processing equipment.
In April MMG welcomed the Queensland Government’s decision to grant the Dugald River zinc project the status of prescribed project. The decision is expected to significantly streamline administrative decisions and accelerate the development of the mine.
MMG Chief Executive Officer Andrew Michelmore said the company appreciates the strong support it has received from the Queensland Government. “This decision will support MMG to deliver one of the world’s highest-grade zinc deposits at a time of tightening global zinc supply,” he said. He added that the project, which is still subject to financing, will contribute directly to the North West Queensland Mineral Province at a time when new investment is needed.
“The development of Dugald River is expected to provide significant employment, economic and revenue benefits to Cloncurry and Queensland over an expected mine life of more than 30 years. MMG has a proud history in Queensland through the operation of the Century mine and we look forward to working with the state and local governments to make this project a success.”
While the project is subject to final financing arrangements, MMG continues to advance with pre-production mine development and anticipates first zinc production in 2018.
Based on one of the world’s highest-grade known zinc deposits, Dugald River is a development project in northwest Queensland, Australia.
MMG announced an updated development plan for Dugald River in 2015. The plan includes a mine production rate of 1.5 Mt/y and construction of a mill and concentrator able to produce approximately 160,000 t/y of zinc in zinc concentrate over an estimated 28 year mine life. This is expected to place Dugald River within one of the top ten zinc mines globally when operational. Under the updated plan, construction of remaining surface infrastructure facilities will commence in 2016 with first production from a Dugald River concentrator expected during the first half 2018.
RCR’s Managing Director & CEO, Dr Paul Dalgleish: “The project for MMG builds on our 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.”