Tag Archives: Citronen

Metso and Ironbark Zinc sign equipment and services MoU for Citronen

Base metals, Equipment maintenance, Metallurgy, Mineral processing, Mineral project development, Mining equipment, Mining services, , , , ,

Ironbark Zinc and Metso have signed a memorandum of understanding (MoU) in relation to a potential services and equipment contract for the Citronen zinc project in Greenland.

The ASX-listed company said the MoU sought to provide a platform to negotiate a commercial and binding agreement regarding services and equipment to be provided by the mining OEM for Citronen. The pact would enable Metso to commence engineering tasks preceding the completion of detailed engineering of processing equipment, including the provision of technical specifications for specific third-party supplied equipment, the company added.

Ironbark said it was also in discussions with other “highly regarded groups” regarding the supply of all components of the Citronen facility. “These companies have the potential to significantly assist with the overall project financing,” it said.

Metso has collaborated with Ironbark for several years and was instrumental in the preparation of the process flow sheet for the Citronen feasibility study, according to Ironbark.

“The two groups have maintained open communication during this time. A Metso technical representative visited the project site in August 2018,” the company added.

The future commercial agreement will contain and address the following matters:

  • Scope of Metso’s supply of services and equipment;
  • Price for Metso’s supply of services and equipment and payment terms, including a lump sum cost for remaining engineering works and project management scope;
  • Delivery terms;
  • Provision of process guarantee;
  • Metso compliance with Greenlandic Government requirements and guidelines as applicable.

Ironbark Managing Director, Jonathan Downes said: “We are delighted to have moved towards building on our long running relationship with Metso and the Citronen zinc project. Metso is exceptionally well regarded internationally and has direct experience with projects with very similar commodities, grades and scales to Citronen. Metso is also located in Scandinavia and therefore is well positioned to comply and assist with the training and employment obligations that Ironbark is operating under in Greenland.”

The wholly-owned Citronen project is held under a granted 30-year mining licence. The $514 million project envisages a production rate of 3.3 Mt/y with up to 200,000 t/y of zinc metal produced over 14 years.

In August, Ironbark signed an MoU with Byrnecut Offshore Pty that could see the contractor carry out mining, model underground mine costs and provide the fleet for the project.

Ironbark Zinc signs up Byrnecut for Citronen underground contract mining

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Greenland-focused Ironbark Zinc has signed a memorandum of understanding with Byrnecut Offshore Pty that could see the contractor carry out mining, model underground mine costs and provide the fleet for the Citronen zinc-lead project.

The contract has been signed as Ironbark carries out work on removing key items from the project’s capital cost estimates. A definitive feasibility study last year pegged this at $514 million.

Ironbark said the Byrnecut agreement provides it with “extensive international experience in underground hard-rock mechanised mining”.

It said the companies would work towards a more detailed cost based commercial agreement operating under agreed margins through each project stage, and will also encompass agreed performance margins. As part of the agreement, Byrnecut is also expected to hold the debt and security of the equipment for the underground mining fleet.

Ironbark is in discussions with other groups for the remaining disciplines, or to support the project, that have the potential to collectively and significantly assist with the overall project financing.

The $514 million project envisages a production rate of 3.3 million tonnes per year with up to 200,000 t/y of zinc metal produced over a mine life of 14 years.

Located in northern Greenland, Byrnecut’s first-hand knowledge of the skills necessary to overcome remote location logistics, language barriers and upskilling the national workforce will prove key to development and operating success.

Ironbark Managing Director Jonathan Downes said: “Byrnecut has the capacity to provide Ironbark with an immediate ‘bolt-on’ underground mining expertise that will assist Ironbark as we move from financing to active mining.”