Step towards uranium boom

Ausenco has executed a contract with Uranium One Australia for the Engineering Procurement and Construction Management (EPCM) services for the Honeymoon uranium project in South Australia.

The remaining development of the Honeymoon project will involve capital investment in the order of $70-$80 million, according to the company.

Ausenco Minerals will be managing the EPCM project from its newly established Adelaide office and the contract award follows the completion of the initial feasibility study; technical reviews and engineering program completed earlier this year.

The Honeymoon project is expected to produce about 880,000 pounds of U3O8 per year. According to the company, the transition to this next phase follows the successful entry into a joint venture by Uranium One with Mitsui for this and other projects and associated fund raising of $104 million.

Ausenco Chief Executive Officer Zimi Meka said the contract award follows the conversion of initial Front End Engineering and Design (FEED) work into a very strategic EPCM contract for Ausenco.

“Our scope is to engineer and construct the uranium processing plant to produce uranium to a U3O8 state,” he said.

“This new project combined with the announcement of the award of the Bemax Snapper Mineral Sands project earlier this week not only strengthens our EPCM order book into 2009 but more than replaces the 2009 revenue contribution from the deferred Martabe and Sepon projects.”

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