Gulf signs agreement with Weltes Energi for construction of Kupang smelter
Thursday, August 24 2017 - 04:36 AM WIB
ASX-listed Gulf Manganese Corporation Limited said it has entered into an agreement with Indonesian-based PT Weltes Energi Nusantara to work under EPCM contractor XRAM Technologies (Pty) Ltd to undertake the construction phase of the Kupang ferromanganese smelter project in East Nusa Tenggara Province.
Gulf said in a statement Wednesday that PT Weltes is a multi-disciplinary engineering, procurement, construction and fabrication manufacturer with more than 20 years of experience. PT Weltes has specific experience in mineral and chemical processing plants and infrastructure, including civil work and electrical and control automation is therefore well suited to the scope of work required for construction of Gulf?s Kupang smelting hub facility.
Gulf in May of this year appointed XRAM as the EPCM contractor, to deliver the Kupang smelting project.
?At Kupang, site development works are continuing following the clearing of the Bolok industrial area and connection of site power last month,? the company said in the statement.
In addition, Gulf said it is continuing to work to secure initial manganese supplies from local miners. ?Discussions are progressing well and the company expects to execute binding agreements in the near- term,? it said.
Gulf said it is also actively progressing permitting requirements for the sale and shipment of manganese concentrates (>49% Mn) under the Indonesian provision for smelting and processing companies to sell concentrate during construction to assist with cash flow. ?The sale of manganese concentrate has the potential to be a significant near-term value catalyst for the business and the company looks forward to providing further updates in due course.?
As previously reported, the refurbishment of Gulf?s first two smelting furnaces is now underway in South Africa prior to their scheduled shipment to Kupang in the fourth quarter of 2017.
?Refurbishment of the furnace equipment is progressing in line with the baseline project schedule and no delays are currently foreseen,? Gulf said. Dismantling of the equipment at Transalloy?s site is near completion, with the furnace shells and slipping devices currently being removed with a target completion date of August 31, 2017.
Furthermore, contracts for the refurbishment of the equipment components have been awarded, and all dismantled equipment has been safely transported from Transalloy?s site to the various sub- contractors where refurbishment activities has commenced, it added.
Gulf targets the commissioning of the smelting facility in the first half of 2018. The company?s proposed Kupang smelting hub facility will contain eight furnaces built in stages over five years, targeting the production of a premium quality 78%+ manganese alloy.
Editing by Reiner Simanjuntak