Ausenco awarded $76m N. Maluku EPCM contract from Newcrest

Australian engineering and project management services firm Ausenco Limited has got an engineering, procurement and construction management (EPCM) contract for the Gosowong gold extension project in Halmahera island, North Maluku from Australian miner Newcrest Mining Limited .

The value of the contract is approximately US$76 million, the company said.

Ausenco has been involved with the Gosowong project since it carried out feasibility study in early 2008.

?Gosowong is the next major project in a series of resource and infrastructure contract awards that we expect to convert from feasibility studies to project work this year,? Ausenco?s CEO Zimi Meka said.

The extension project aims to increase Gosowong's gold production to an average annualised rate of over 450,000oz from March 2010.

Under the contract, Ausenco will among others extend the existing Kencana underground mine into the K Link and K2 orebodies and increase the throughput of the existing processing plant to 65tph from 50tph, upgrade processing facilities, increase tailing storage capacity and upgrade site infrastructure.

Newcrest Mining Limited holds 82.5 percent equity in Gosowong mine. Newcrest?s board approved of the Gosowong Expansion Project on Jan. 22, 2009.

The capital cost of the project is estimated at $179 million including early commitment capital. (denny)