CIMIC Group’s mineral processing company, Sedgman, has been awarded contracts by ASX listed Resource Generation’s subsidiary Ledjadja Coal for the design, engineering procurement, construction, as well as the ongoing operations and maintenance at the Boikarabelo Coal Handling and Preparation Plant (CHPP) in South Africa.
The design, engineering procurement and construction contract, and a further ancillary works contract, will generate revenue to Sedgman of approximately US$210 million1 over 26 months.
The operations and maintenance contract will generate revenue to Sedgman of US$100 million1 over the four year period post completion of the facility.
CIMIC Group Chief Executive Officer Michael Wright said: “This contract is a valued addition to our mineral processing portfolio. It reflects Sedgman’s world-leading expertise in the coal sector and its established success in delivering projects in mining jurisdictions globally.”
Sedgman Managing Director Grant Fraser said: “We are pleased to be able to deliver our whole-of-life approach to this important project – building the processing plant and providing ongoing operational involvement for Resource Generation, and its South African subsidiary Ledjadja Coal.
“Our technical expertise and ability to deliver all phases of the life cycle will enable us to achieve successful outcomes for our client, whilst continuing to differentiate Sedgman in the global mining market.”
The project comprises design, civil, structural, mechanical, piping, electrical and commissioning works, as well as operations and maintenance, for the 15 million tonnes per annum CHPP located in the Waterberg Coal fields in the Limpopo Province, South Africa.
Work is expected to commence once the Boikarabelo Project Funding has been finalised, with debt providers currently in the final process of credit approvals.
1Using the exchange rate of A$1=10 ZAR/R, US$1=13.6 ZAR/R