Perth-based Strandline Resources has awarded a $US17.6 million ($24.7 million) engineering, procurement and construction (EPC) contract at the Fungoni mineral sands project in Tanzania, Africa to GR Engineering.
The contractor, which previously worked on Fungoni’s feasibility study, will construct a 2Mt/y minerals processing plant at the facility over a 12-month period.
Its scope of the work will include the design and supply of several installations, as well as bulk earthworks, roads and power stations.
GR Engineering will commission the project’s mining field unit, wet concentrator plant, mineral separation plant, and tailings thickener and disposal system.
The works are subject to certain conditions, which are expected to be satisfied by March 31 2019.
GR Engineering managing director Geoff Jones said, “The delivery of this project provides GR Engineering with an important opportunity to obtain further exposure to a growing global market for high-quality mineral sands products.”
The Fungoni heavy mineral sands project is about 25km from the Port of Dar es Salaam, Tanzania’s primary trading port.
It is focused on ilmenite (for titanium), rutile and zircon production and hosts a maiden ore reserve of 12.3Mt at 3.9 per cent total heavy minerals for around 480,000 tonnes.
According to Strandline managing director Luke Graham, the project has secured offtake agreements for 100 per cent of its product. He called the GR Engineering deal another milestone for the project.
“[GR Engineering] has partnered with Strandline through the feasibility stage of the project and has committed to deliver a high-quality beneficiation and mineral separation facility, designed to produce world-class zircon and titanium products,” he said.