Ausenco wins iron ore process plant contract

Ausenco has won the contract for the expansion of the Tonkolili iron ore mine's process plant.

The project, in Sierra Leone, will see it provide Front End Engineering and Design (FEED) for phase 2 of the expansion, which involves the process plant and related infrastructure.

The expansion will provide an additional production of up to 10 million tonnes per annum of iron ore concentrate.

Work is set to begin immediately, and scheduled for completion later this year.

Zimi Meka, Ausenco's CEO, said "Tonkolili (a subsidiary of African Minerals Limited) is amongst the most advanced new iron ore projects of significant scale in recent years and is operating on one of the largest iron ore deposits in the world, with an associated 200 kilometres of rail and port infrastructure".

"This contract award further increases Ausenco's work on hand in the APAC/Africa region, builds upon our experience in West Africa, and expands our experience in the iron ore sector," he said.

Ausenco previously operated and maintained phase one of the project from 2011 to 2012, and carried out the engineering and procurements for phase 1b plants.

While Ausenco did not give a value on the award, it is understood that initial expenditure for the construction of the concentrator and associated facilities will be funded from existing restricted funds of approximately $300 million, with the balance sourced through project level debt financing. 

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.