SEDGMAN WINS LUCRATIVE CONTRACT IN US
Written on the 4 March 2015
SEDGMAN Limited (ASX:SDM) has inked an $18.5 million deal to become the principal contractor for a mineral sands facility in the US.
The Brisbane-based supplier will develop Twin Pines Minerals LLC's (TPM) new relocatable modular mineral sands wet concentrator plant in New Jersey.
The contract includes engineering design, procurement, fabrication and delivery of the plant, as well as associated infrastructure and technical support.
Sedgman's winning design concept followed an extensive engineering design and metallurgical testing phase.
Sedgman CEO and managing director Peter Watson says it was an exciting time for the company to be working in the international mineral sands market.
"We have been working closely with TPM over the last two years to refine the design and delivery model to meet the requirements of this project, and we are currently active in developing other near term project opportunities with TPM," Watson says.
"The modular plant design, delivery and commissioning is a great example of our Global Minerals Strategy in action involving inputs from multiple offices to offer TPM state of the art design delivered in a cost-effective and timely manner through our Shanghai procurement hub."
Once completed, the facility will process 232 tonnes per hour of heavy mineral sands feed from the existing deposit and produce a concentrate of zircon and ilmenite ready for processing.
Watson says the announcement heralds an important move for the company, particularly as a player in offshore markets.
"It is also strategically important as Sedgman was an active participant in minerals processing in the United States market up until 2006," he says.
"This project gives a solid foundation to re-establish our presence in the North American market and continue strengthening our relationship with TPM."
Detailed design is underway, with the project expected to be completed in March-April 2016.