Ausenco awarded Create phase contract for US$1.8 bn Kazakh copper project
Ausenco Limited (ASX: AAX) has been awarded a $45 million Create phase engineering services contract for the US$1.8 billion Bozshakol copper project owned by Kazakhmys plc. (LSE: KAZ). Ausenco Minerals and Metals business will be providing engineering services for a copper concentrator plant that is estimated to have a throughput of around 28 million tonnes per annum. Ausenco CEO Zimi Meka said the contract win further builds the company’s relationship with Kazakhmys and increased its footprint in the high growth region of Central Asia.“We’re excited about the opportunities ahead of us and look forward to working with the owner teams to deliver these important projects.
According to a Kazakhmys statement in August this year, Bozshakol, located in northern Kazakhstan, is a green-field development project, close to existing power, transportation and other infrastructure. The deposit has a Mineral Resource of 1,173 million tonnes at an average copper grade of 0.35%, including 832 million tonnes of Measured and Indicated Resource with an average copper grade of 0.37%. The orebody also contains valuable by-products of gold and molybdenum.
Bozshakol will have a production life of over 40 years, with average output of 75,000 tonnes copper in concentrate per annum, although the production will average 100,000 tonnes per annum for the first 14 years. At current prices, Kazakhmys says Bozshakol has a highly competitive operating cost putting it in the second quartile for copper mines globally.
Bozshakol will have a three year development phase, which will start by the end of this year, slightly ahead of the original schedule. Pre-production mining is due to commence in 2014, with the first ore to be processed at the associated concentrator during 2015.
The project is estimated to have a capital cost in the region of $1.8 billion, and is being funded from an existing $2.7 billion financing facility provided by the China Development Bank and Samruk-Kazyna.
Bozshakol is the largest single mine development in Kazakhstan by both volume and value and will employ around 1,500 people at peak construction activity in the development stage, and slightly over 1,500 people when operational.
Ausenco announced it had received a Letter of Intent to deliver two projects worth $70 million in revenue on November 8th. Bozshakol is the second of these projects and the contract has now been signed.
According to a Kazakhmys statement in August this year, Bozshakol, located in northern Kazakhstan, is a green-field development project, close to existing power, transportation and other infrastructure. The deposit has a Mineral Resource of 1,173 million tonnes at an average copper grade of 0.35%, including 832 million tonnes of Measured and Indicated Resource with an average copper grade of 0.37%. The orebody also contains valuable by-products of gold and molybdenum.
Bozshakol will have a production life of over 40 years, with average output of 75,000 tonnes copper in concentrate per annum, although the production will average 100,000 tonnes per annum for the first 14 years. At current prices, Kazakhmys says Bozshakol has a highly competitive operating cost putting it in the second quartile for copper mines globally.
Bozshakol will have a three year development phase, which will start by the end of this year, slightly ahead of the original schedule. Pre-production mining is due to commence in 2014, with the first ore to be processed at the associated concentrator during 2015.
The project is estimated to have a capital cost in the region of $1.8 billion, and is being funded from an existing $2.7 billion financing facility provided by the China Development Bank and Samruk-Kazyna.
Bozshakol is the largest single mine development in Kazakhstan by both volume and value and will employ around 1,500 people at peak construction activity in the development stage, and slightly over 1,500 people when operational.
Ausenco announced it had received a Letter of Intent to deliver two projects worth $70 million in revenue on November 8th. Bozshakol is the second of these projects and the contract has now been signed.
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