Join our daily newsletter At The Bell to receive exclusive market insights
- Australian Strategic Materials’ (ASM) confirms Hyundai Engineering (HEC) will commence its contract for design work on the Dubbo project in NSW
- The work will be conducted in three stages, with front-end engineering and design activities given the green light to proceed
- Stage one is expected to be completed by mid-2023, with the overall contract anticipated to finalised by the second half of 2024
- ASM CEO Rowena Smith says the commencement is an important step as it progresses development towards a final investment decision
- Shares in ASM are up 9.09 per cent, trading at $1.62 at 1:05 pm AEDT
Australian Strategic Materials’ (ASM) has confirmed Hyundai Engineering (HEC) will commence its contract engineering, procurement and construction definition work (EPCD) work for the Dubbo project in New South Wales.
The EPCD work will be conducted in three stages, which the company has given a notice to proceed.
HEC is expected to complete the first stage by mid-2023, with the overall contract anticipated to finalised by the second half of 2024.
The overall price of $46.7 million of the EPCD remains unchanged and will continue to be paid based on the delivery of milestones.
“We are very excited to commence the EPCD activities with our partner HEC, one of the world’s leading EPC firms,” ASM CEO Rowena Smith said.
“This is an important step as we progress development of our Dubbo project towards final investment decision.”
The first stage will establish front-end engineering and design activities, and progresses with standards development for $5 million.
The second stage will then further develop the engineering design to allow for identification and selection of technology requirements for $7 million.
Lastly, the final stage provides for the remainder of the EPCD services to allow HEC to provide an open-book estimate and offer to implement the Dubbo project under an engineer, procure and contract (EPC) contract for $34.7 million.
Shares in ASM were up 9.09 per cent, trading at $1.62 at 1:05 pm AEDT.
