AUSENCO FEEDS ON PERUVIAN CONTRACT

Written on the 2 June 2011

AUSENCO FEEDS ON PERUVIAN CONTRACT

MINING engineering services company Ausenco (ASX:AAX) has been awarded the front end engineering and design (FEED) contract for a US$920 million copper project in Peru.

The Peruvian Constancia project is owned by Canadian miner HudBay Minerals Inc, and incorporates the development of an open cut mine and construction of a 25 Mt/y copper and molybdenum concentrator with associated infrastructure.

In a statement today to the ASX, Ausenco CEO Zimi Meka (pictured) says the win further builds the Brisbane company’s profile in the key growth market of South America.

“Our team has worked closely with HudBay throughout the past 12 months to optimise key elements of this important project and the award is a pleasing confirmation of the innovative solutions delivered as part of the initial study,” says Meka.

“Following the completion of this innovate phase by early 2012, and subject to HudBay Board approval at that time, we look forward to continuing our work with HudBay to develop the mine, plant and infrastructure for anticipated full production commencing in 2016.”

HudBay recently announced a US$116 million pre-construction program for the Constancia project.

This involves early equipment procurement for long lead items, a resource model update, metallurgy review and pit optimisation study, geotechnical and condemnation drilling and a US$9 million exploration program.

Ausenco expects tol exceed its FY10 financial results of $480 million in revenue and an $8.9 million NPAT, after winning a number of small to medium contracts late last year.

Before markets closed today AAX shares remain steady at $3.12.


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