AUSENCO SECURES AFRICAN ENGINEERING CONTRACT

AUSENCO (ASX:AAX) has secured an engineering contract at an iron ore mine in Sierra Leone.

The Front End Engineering and Design (FEED) contract with Tonkolili Iron Ore Limited is for the phase two expansion of the project, which involved the development of a process plant and related infrastructure.

The group aims to increase production at the mine by 10 million tonnes per annum of concentrate.

Work will commence immediately and is expected to be finished by mid this year.

Ausenco CEO Zimi Meka (pictured) says AAX is expanding its African footprint.

“This contract award further increases Ausenco’s work on hand in the APAC/Africa region, builds upon our experience in West Africa and expands our global experience in the iron ore sector” says Meka.

Ausenco previously operated and maintained Phase 1 of the project from 2011 to 2012, as well as carrying out engineering and procurement for Phase 1b plants.

The expansion will take annual production above current production target of 20 million tonnes of iron ore per annum so as to include the production of a high grade concentrate from 2016.
Tonkolili has a JORC compliant resource of 12.8 billion tonnes.

Initial expenditure for the construction of the concentrator and associated facilities will be funded from existing restricted funds of approximately $300m, with the balance sourced through project level debt finance.