Following a competitive tender process and ongoing engagement with a range of international contractors, Bandanna said Samsung C&T had been appointed on an early contractor involvement basis to produce a lump sum EPC contract for development of the project.
Samsung C&T will work closely with Bandanna and Ausenco, which is finalising detailed engineering design and contract tenders, to develop within the next three months a final lump sum EPC contract for construction of the project.
Bandanna managing director Michael Gray said the company was very pleased to be working closely with Samsung, one of the world’s leading EPC contractors and Korea’s largest conglomerate to finalise a lump sum EPC contract for Springsure Creek.
“Samsung has demonstrated the ability to successfully deliver mining and infrastructure projects around the world,” he said.
“We are pleased to be able to utilise Samsung’s experience for development of the Springsure Creek project.
“The involvement of a company of Samsung’s size and global capability demonstrates the confidence that it has in the quality of our project and this project’s place in a global mining sector context.”
Samsung is engaged as EPC contractor for the Roy Hill iron ore project in Western Australia where it successfully progressed a lump sum EPC project to full project funding.
Bandanna has been working closely with Samsung over the last six months to progress development of its Springsure Creek project.
If the ultimate EPC contract is accepted, Samsung will become the principal contractor responsible for delivering the Springsure Creek mine.
It also confirmed it would continue to work with Bandanna to assist it in securing investment and debt funding.
Shares in Bandanna remain suspended as the company seeks to bed down funding for the Springsure Creek project.
Bandanna said it was also progressing negotiations with Korea Midland Power Co (KOMIPO) for it to acquire an equity interest in Springsure, with the binding terms of the investment and offtake contract being finalised.
KOMIPO, Samsung C&T and Bandanna would continue to work together to progress negotiations with other Korean investors in relation to opportunities for equity investment and coal offtake, Bandanna said.
