Nevsun's Bisha expansion project 60% complete
Nevsun's Bisha expansion project 60% complete
2015-04-22 07:54 ET - News Release
Mr. Cliff Davis reports
NEVSUN PROVIDES ZINC EXPANSION PROJECT UPDATE
Nevsun Resources Ltd. has provided an update on the Bisha zinc expansion project which will average over 100,000 tonnes (225 million pounds) of zinc and 24,000 tonnes (55 million pounds) of copper per year for 10 years after start-up in mid-2016.
Zinc expansion project highlights:
- Over all, nearly 60 per cent complete with zinc plant commissioning on schedule for mid-2016;
- Foundations and civil work complete with steel erection under way;
- Flotation cells transported to site, regrind mills soon in country;
- Forecast to complete: $92-million (U.S.) with $63-million (U.S.) committed, $31-million (U.S.) spent;
- No lost-time injury or environmental incidents since project commenced;
- Uncommitted off-take is well timed for anticipated supply deficit in the zinc market.
The zinc expansion project adds zinc flotation capacity to the Bisha processing plant. This zinc flotation plant floats zinc concentrate after existing copper flotation, enabling the production of two products: zinc and copper concentrate as required to process primary ores.
The project remains on schedule with engineering design 89 per cent complete, procurement 60 per cent complete, site construction 21 per cent complete for an overall project progress of nearly 60 per cent as of March 31, 2015. The major infrastructure and equipment engineering has been complete for some time with only minor tie-ins and minor modifications outstanding. Procurement of mechanical, piping, electrical and automation packages are mostly finished. All long-lead orders were placed in 2014. The most critical civils component of construction is complete and steel erection by on-site specialist contractors has commenced.
The overall forecast to complete the project is $92-million (U.S.) inclusive of $6-million (U.S.) contingency. Combined concentrate production will average approximately 300,000 tonnes per year, not dissimilar to 2014 production rates. No additional capital is therefore required for the land transport or port infrastructure to export the copper and zinc concentrates produced from the zinc expansion starting in mid-2016. An updated picture gallery is available on the company's website.
Cliff Davis, Nevsun chief executive officer, commented: "We take a diligent approach to capital project management to complete projects on time and on budget. Our decision at the start of the zinc project to strengthen the owner's construction team with a more integrated EPCM approach has realized additional savings. We are confident that the robust flotation process plant will facilitate potential future throughput expansions and extended mine life. We have also been careful not to commit any of our zinc off-take so as to take advantage of the expected tightening of worldwide zinc supply."
We seek Safe Harbor.
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