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Ausenco awarded Honeymoon contract

Ausenco Minerals will be managing the EPCM contract which follows the wrapping up of the initial feasibility study, technical reviews and engineering program earlier this year. Remaining development work at Honeymoon is expected to cost in the order of $A70-80 million with the project expected to produce around 880,000 pounds of uranium per year over a six-year mine life. “The contract award follows the conversion of initial front end engineering and design (FEED) work into a very strategic EPCM contract for Ausenco in one of potentially the future’s largest energy sources – uranium,” Ausenco chief executive Zimi Meka said. “Our scope is to engineer and construct the uranium processing plant to produce uranium to a [uranium oxide] state.” Meka added that the Honeymoon contract and Bemax’s Snapper mineral sands contract announced last week more than replaced the 2009 revenue contribution from the deferred Martabe and Sepon contracts. Japanese company Mitsui bought a 49% stake in Honeymoon in October for around $104 million with the funds to be used to finish bringing Honeymoon into commercial production.

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