Herald to award EPCM contracts for N. Sumatra zinc/lead project
Thursday, October 5 2006 - 07:00 AM WIB
Herald said the project engineering and design of the process plant and infrastructure is progressing, with specification of key major equipment items complete.
Tailings facility design is progressing with a staged approach to construction to be adopted. The accommodation camp has been designed and layouts and preliminary design have been completed for the port facility at Kuala Tanjung, the company said.
Commissioning of the process plant remains on schedule in the fourth quarter of 2007, Herald added.
According the company, power station negotiations are nearing finalization and two agreements that make up the Build, Own and Operate framework are planned for signing in the fourth quarter of 2006. The first agreement caters for power station construction and the second agreement relates to the longer-term conditions relevant to operation and power supply.
A contract for construction of bulk earthworks for the access road and construction camp area is scheduled for award early the fourth quarter this year, given prerequisite completion of land acquisition and final approval from the authorities to start construction. A letter of intent has been entered into with a major earthworks contractor in anticipation of this occurrence.
Herald secured the vital environmental impact assessment (AMDAL) approval from the regent of Dairi on Nov. 1, 2005.
The company, together with its 20 percent partner PT Aneka Tambang Tbk, is planning to develop Dairi zinc/lead project to process 1 million tons of ore per annum and to produce between 220,000 and 100,000 tons of zinc and lead concentrates annually.
Capital costs of the project are estimated at US$118 million. (denny)