TNG has formed a partnership with McMahon Services and Clough to provide engineering, procurement and construction (EPC) services at the Mount Peake vanadium-titanium-iron project in the Northern Territory.
The strategic co-operation agreement will see McMahon and Clough form a joint venture to review Mount Peake’s definitive feasibility study (DFS) and evaluate the project’s preliminary construction management and procurement contracting services with TNG’s engineering partner, SMS Group.
According to TNG, the agreement is aimed at advancing the relationship between the parties to a stage where it can make a final decision on its construction plans for the project, as well as support for the company in securing a financial investment decision.
TNG managing director Paul Burton said the agreement with Clough and McMahon put the foundations in place for an expansive EPC approach to the financing and construction of the Mount Peake project.
He added the approach would create a structure which would potentially include the two engineering groups in its final EPC team.
“We already have a strong and long-standing relationship with our German-based strategic engineering partner, SMS Group, and this agreement with Clough and McMahon is designed to build on and enhance that relationship,” Burton said.
“Having two of Australia’s leading contracting groups as part of our construction consortium is a real positive for the Mount Peake project.”
TNG updated its DFS for Mount Peake last November, with key findings including life-of-mine net cash flow of $11.7 billion, pre-tax rate of return of 44 per cent and a net present value of $4.7 billion.
Clough chief executive Peter Bennett commented: “We’re embracing our status as preferred team and local delivery partner for the construction and installation of the process plant, along with EPC work for the project’s balance of plant systems and non-process infrastructure.”
McMahon will also partner with Indigenous contracting business, Intract Australia, on the project, according to directors David and Andrew McMahon.
“The project will offer considerable Indigenous employment, training and long-term career paths throughout the life of the project,” the directors said.
Mount Peake, 235km north of Alice Springs, is forecast to be a top 10 global producer of vanadium if developed.