GR Engineering Services has been engaged by Salt Lake Potash to help design and construct its Lake Way sulphate of potash (SOP) project in Western Australia.
Lake Way is a 245,000 t/y SOP development with an expected mine life of over 20 years. Located in the Goldfields region of Western Australia, first production is expected by the end of the year.
GR Engineering is to provide services for non-process engineering design and the management of procurement, construction and commissioning of the Lake Way project processing facility and associated infrastructure, it said. The engineering firm has separately been engaged to undertake the civil, structural, mechanical, electrical and piping construction works for those project areas.
It is anticipated that aggregate revenue from the delivery of services, procurement and construction works associated with the Lake Way project from the commencement date to practical completion will be approximately A$107 million ($73 million), the company said.
“GR Engineering’s scope contemplates a collaborative arrangement, where it will work with Salt Lake Potash’s project team and manage the delivery of third-party process design and key equipment supply,” the company said. The construction scope will be performed on a target cost estimate basis, incentivising GR Engineering to achieve favourable budget and schedule outcomes, it added.
The engineering, procurement and construction contract involves the provision of plant, labour, materials and construction services for the process plant and non-process infrastructure, valued at A$85 million, while the engineering, procurement and construction management (EPCM) agreement contract involves the provision of services for the EPCM for areas of the process plant and non-process infrastructure,valued at A$22 million, Salt Lake Potash said.
Geoff Jones, Managing Director of GR Engineering, said: “We are extremely pleased to have been engaged to play a key role in the delivery of the process plant and non-process infrastructure for the Lake Way project. We look forward to continuing to work collaboratively with Salt Lake Potash to deliver safe and successful outcomes.
“GR Engineering looks forward to Salt Lake Potash emerging as a significant new Australian SOP producer.”
