After completing a key engineering phase of the planned small-scale and demonstration high purity alumina (HPA) production facility (SSP) in Western Australia, Cadoux Ltd (ASX:CCM, OTCQB:FYIRF) has appointed GRES as contractor for the Phase 2 engineering study.
The scope of work to be completed by GRES in Stage 1/Phase 2 includes Front-End Engineering Design (FEED) level detail and includes an option to take the project into construction under an EPCM post a final investment decision (FID).
Cadoux is committed to developing its critical mineral projects which includes the production of ultra-high quality, HPA in Western Australia, the Minhub mineral sands and rare earths processing facility in the Northern Territory and associated downstream development opportunities.
“Significant milestone”
Cadoux managing director Roland Hill said: “The selection and appointment of GRES as the preferred engineering contractor for the SSP is a significant milestone for the project. GRES is an industry-leading contract engineering company and is highly regarded for their hydrometallurgical experience and successful project completion track record.
“GRES will complement the HPA project delivery team exceptionally well as they were the lead engineering firm involved in the delivery of the original HPA feasibility studies (PFS and DFS).
“We look forward to working closely with GRES over the next development stages and together add significant value to the HPA project.”
Commercial objective
Cadoux has an immediate commercial objective to finalise the engineering studies for the SSP and to accelerate the development progress of the HPA project to production.
The Stage 1/Phase 1 engineering works have been completed as a material step to the HPA project development and the engineering studies now advance to Phase 2 with the appointment of GRES as preferred contractor to finalise the engineering workstreams and with the option to take the project into construction under an EPCM post an FID.
HPA project deliverables for GRES in Phase 2 workstreams include:
- Updated capex estimate;
- Project execution plan;
- Master document register (MDR);
- HAZOP reports (process safety studies);
- Specifications and datasheets;
- Final plot plan, general arrangement drawings; and
- Piping & Instrumentation Diagrams (P&ID drawings).
GRES managing director Tony Patrizi said: “GR Engineering is pleased to continue working on this important project in Western Australia and looks forward to engaging closely with the Cadoux team during the study process and progressing post FID into project execution.”
Two SSP stages
Cadoux is developing the SSP in two project stages. Stage 1 is the pre-FID project development including:
- Phase 1 - Flowsheet development, optimising and engineering; and
- Phase 2 - Front end engineering.
Stage 2 Is the post-FID workstreams for detailed project execution and delivery framework for successful project completion.
Once completed, Phase 1 and 2 workstreams will combine to provide a higher level of engineering confidence than a definitive feasibility study.
The studies are aimed deliberately at a FEED level to demonstrate to stakeholders that the SSP project can be constructed and operated profitably whilst meeting all relevant regulatory, environmental and legal requirements.
GRES’s Stage 1/Phase 2 completion is scheduled for December 2024.