Page 15 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 13
MINE PLANTS & ASSOCIATED INFRASTRUCTURE
On 19 September 2014, Sundance awarded the Front End Engineering Design
(FEED) contract to Fluor Australia. The award of the FEED contract is the first of a
two phase award of the EPC contract for the Mbarga and Nabeba Mine Plants and
associated infrastructure.
Sundance issued tender packages for the design and
construction of process and infrastructure facilities at the mine
sites at Mbalam and Nabeba to a number of international
Engineering, Procurement and Construction (EPC) contractors in
August 2013. Competitive tenders were received in April 2014
from three bidders.
Submissions included technical and commercial proposals to
carry out the FEED study and to execute a full EPC contract
for the mine plants and associated mine site infrastructure at
both the Mbarga and Nabeba mines. Tenderers also proposed
potential partners who could provide the necessary debt
financing for the contract, if required.
The FEED study contract awarded will give Fluor the first right,
but not the last right, to negotiate a full EPC contract for delivery
of the mine plant and associated infrastructure defined by the
FEED study. In the event that an acceptable EPC price and
contract terms cannot be agreed, Sundance will have the right
to negotiate with any of the other original tenderers or to institute
an entirely new tender process for the EPC contract.
MININGCONTRACTOR
The development plan for the Mbalam-Nabeba Iron Ore Project includes
contract mining with the mining contractor to provide all of the required
equipment and services to mine the Mbarga and Nabeba deposits.
Over the past year Sundance has held discussions with a number of parties who have the capability to provide these services. Two
specialist contract mining companies with experience operating in West Africa provided indicative prices which reconfirmed there is an
appetite in the market to take on this work.
Trial mining at Nabeba, Republic of Congo