Forge Group Wins $290 Million EPC Contract for Dugald River Zinc Concentrator

Researched by Industrial Info Resources (Perth, Australia)--The engineering, procurement and construction (EPC) contract for Minerals and Metals Group's (MMG) Dugald River project has been awarded to Forge Group Minerals and Resources Limited (Perth, Western Australia), a wholly owned subsidiary of Forge Group Limited (ASX:FGE).

The contract is valued at more than $294 million. Forge Group Minerals and Resources will provide the specialist engineering and project management, while Forge Group Construction Pty Limited, one of the four business units within Forge Group, will provide the range of required mechanical, electrical and civil work required for the project.

The Dugald River project is located 85 kilometres northeast of Mount Isa, in a mineral-rich area of Queensland, Australia. Industrial Info has been tracking the project from the earlier scoping studies on which Forge had been assisting MMG. After positive results, the companies are now progressing through the detailed engineering aspects.

David Simpson, the chief executive officer and managing director for Forge Group, announced that "this award is a result of our technical expertise in base metal concentrators and the group's ability to work with clients offering a diversified service solution."

This is a perfect opportunity for Forge to expand its commercial portfolio by entering into the Eastern Australian states.

The project is set to commence in February 2014 and to be completed in June 2015. Within this 18-month timeframe, the scope of work includes the construction of a zinc-lead-silver concentrator and associated plant equipment that will be capable of processing the 2 million tonnes of ore from the underground mine.

Along with the Dugald River project, Industrial info is tracking MMG plants such as the Yalgoo Golden Grove polymetallic mine, the Rosebery lead-zinc-silver mine and processing plant, and the Century lead-zinc-silver mine and processing plant.

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