Almonty Industries Inc. (Almonty) has signed an EPC Contract with POSCO E&C for the development works at the Sangdong Tungsten and Molybdenum Mine located in the Republic of Korea.
The EPC Contract is a turnkey based contract for the development and construction of primary facilities for processing tungsten ore mined out of the Sangdong Mine. Under the EPC Contract, POSCO E&C is responsible for not only engineering, civil & architectural, machinery & electrical works of processing plant and auxiliary facilities, but also commissioning of such facilities. The EPC Contract has a net contract price of KRW 40.3B and, including the value of primary equipment which will be erected and installed by POSCO E&C, the EPC price reaches KRW 54.0B, which accounts for 65% of the total capital expenditure budgeted for the Sangdong Project. The remaining 35% will be spent for the development of underground transportation galleries and accesses to tungsten veins, mine infrastructure, backfill plant, owner’s cost, and other expenses.
The EPC Contract stipulates a construction period of 18 months and commissioning period of 6 months.