September 1, 2010Leading resource sector services company
Sedgman has received the notice to proceed from Discovery Metals for the Boseto Copper Project in Botswana.
Sedgman announced the award of the Engineering Procurement and Construction (EPC) contract on May 24.
The initial scope of works under the contract included the Front End Engineering Design (FEED) and related metallurgical testing for the copper flotation plant.
Subject to the outcome of the FEED and the client’s approval, the scope of works was then to be expanded to include the detailed design, procurement and construction of the plant and associated infrastructure including the borefield development.
The notice to proceed now confirms Sedgman’s expanded scope of works which is expected to take the contract price to more than USD$90 million.
Discovery Metals have issued the notice to proceed so Sedgman can commence detailed engineering and long lead time procurement activities concurrently with Discovery Metal’s finalisation of project and finance approvals.
Sedgman’s Managing Director Mark Read says the receipt of the notice is further evidence of improving conditions in the metalliferous sector.
“The issue of the Notice to Proceed at this stage of the Boseto Project’s development timetable is clear evidence of the confidence that DML have in Sedgman to deliver a technologically superior solution on time and on budget,” Read says.
“While our Metals Engineering business unit has experienced increasing study activity over recent months, the movement of a significant project such as Boseto into the execution phase supports our positive growth outlook for FY2011 and beyond,” he says.
The Boseto project reportedly takes Sedgman’s order book to a new record level of approximately $800 million as of June 30.
