Australian Strategic Materials Ltd (ASX:ASM) has kicked off its engineering, procurement and construction definition work (EPCD) for the Dubbo Project in Central West New South Wales, contracted to Hyundai Engineering Co., Ltd (HEC), one of the world’s leading EPC firms.
Both parties have negotiated a variation to the EPCD which will allow HEC to carry out the EPCD work in stages.
The overall price of the EPCD remains unchanged at $46.7 million and will continue to be paid based on the delivery of milestones.
Looking ahead, HEC is expected to complete stage 1 in mid-2023, with the overall contract anticipated to be completed in the second half of 2024.
World-leading EPC firm
ASM CEO Rowena Smith said “We are very excited to commence the EPCD activities with our partner HEC, one of the world’s leading EPC firms.
“This is an important step as we progress development of our Dubbo Project towards a final investment decision.”
EPCD work
This variation has divided the EPCD work into three stages:
- Stage 1 establishes front-end engineering and design activities and progresses with standards development for $5 million.
- Stage 2 further develops engineering design to allow for the identification and selection of technology requirements for $7 million.
- Stage 3 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.