Join our daily newsletter At The Bell to receive exclusive market insights
- Australian Strategic Materials (ASM) awards Hyundai Engineering (HEC) a contract to provide engineering, procurement and construction definition work (EPCD) for the Dubbo project in NSW
- The contract is valued at $46.7 million and is fixed for three months
- The company will make an initial non-refundable payment to HEC of $500,000 for reimbursement of mobilisation expenses and will make further payments based on delivery of milestones
- Work will commence once HEC has received a notice to proceed and anticipates completion will take 14 months
- Shares in ASM are down 4.26 per cent, trading at $4.49 as of 3:06 pm AEST
Australian Strategic Materials (ASM) has awarded Hyundai Engineering (HEC) a contract to provide engineering, procurement and construction definition work (EPCD) for the Dubbo project in NSW.
The contract is valued at $46.7 million and is fixed for three months.
Under the terms of the contract, the company will make an initial non-refundable payment to HEC of $500,000 for the reimbursement of mobilisation expenses and will make further payments based on delivery of milestones.
The EPCD includes an Association for the Advancement of Cost Engineering standardised
estimate (AACE Class 2 capital cost estimate), an operating cost estimate, a detailed project schedule, major project plans, and early-stage engineering documentation.
Completing the EPCD will allow HEC to produce an open book cost estimate which will form the basis of an EPC offer by HEC to deliver the project.
ASM Managing Director David Woodall said the company was delighted to have signed the contract.
“With this signing, ASM moves one step closer to developing our Dubbo project and
progressing our vision for a vertically integrated strategic materials business,” he said.
When conditions precedent to work commencement and necessary approvals have been filed, the company will issue HEC with a notice to proceed (NTP).
When HEC has received the NTP, it will commence the work contracted and anticipates it will take 14 months to complete.
The Dubbo project represents a large in-ground polymetallic resource of rare earths, zirconium, niobium, hafnium, tantalum and yttrium.
In a global market where diversification of supply is becoming increasingly important, the project presents an alternative, sustainable and reliable source of these critical materials.
Shares in ASM were down 4.26 per cent, trading at $4.49 as of 3:06 pm AEST.
