MMG Dugald River Pty Ltd (MMG Dugald River) today entered into a US$17 million Supply and Services Agreement with Minmetals Australia Pty Ltd (Minmetals Australia) for the provision of permanent village accommodation for the Dugald River project.
The contract comprises the supply of accommodation modules, ancillary buildings and services. The products, including bedroom configurations and laundry facilities, are due to be delivered in four shipments scheduled to commence in late 2012.
Executive General Manager Business Development Michael Nossal said that MMG Dugald River was pleased to have reached this agreement.
“We believe that the agreement with Minmetals Australia will provide us with high quality village accommodation at competitive rates,” said Mr Nossal.
“Commencement of delivery in 2012 will coincide with planned construction activities with respect to the entire Dugald River project,” he said.
Minmetals Australia was selected as the preferred contractor at the completion of a competitive tender process conducted by MMG Dugald River in conjunction with its Engineering Procurement Construction and Management (EPCM) contractor.
A total of seven accommodation module manufacturers submitted bids for the contract and Minmetals Australia was selected based on superior design and quality, while also being the lowest priced tender.
Minmetals Australia Pty Ltd is a subsidiary of China Minmetals Corporation, which is the indirect majority shareholder of MMG Dugald River’s parent, Minmetals Resources Limited. Under the rules of the Hong Kong Stock Exchange, the Supply and Services Agreement is designated a connected transaction and the appropriate announcement has been made to the Exchange.
The final decision to develop the Dugald River project is expected to be considered by the Board of Minmetals Resources Limited by the end of 2012 and subject to other required approvals, the company aims to have the mine in operation during 2014.
About MMG Dugald River Pty Ltd
MMG Dugald River Pty Ltd is a wholly owned subsidiary of Minmetals Resources Limited (MMR) (Stock Code 1208.HK).
The Dugald River project is one of the world’s largest and highest grade known undeveloped lead-zinc-silver deposits with a resource of 53 million tonnes at 12.5% zinc, 1.9% lead and 36g/t silver. Dugald River is located in north-west Queensland, approximately 65 kilometres north-west of Cloncurry.
Minmetals Resources Limited continues to progress the development of the Dugald River project in north-west Queensland with pre-commitment activities including engineering design, refinement of cost estimates and finalising power, access and infrastructure agreements continuing in 2012.
About Minmetals Resources Limited
Minmetals Resources Limited is a mid-tier global resources company that mines, explores and develops base metal projects in Australia, and around the world. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange under Stock Code: 1208. Minmetals Resources Limited owns MMG Dugald River Pty Ltd.
The company is uniquely positioned with an experienced international management team, public ownership on the Hong Kong stock exchange (28.3%) and support of its ultimate controlling shareholder China Minmetals Corporation (71.7%).
About Minmetals Australia Pty Ltd
Minmetals Australia Pty Ltd, a wholly owned branch office of China Minmetals Corporation, was founded in 1988. Its main business scope includes supplying China-made steel products into the Australian market, trading metallurgical raw material, and investing in Australia.
Representatives from MMG Dugald River and Minmetals Australia sign the Supply and Services Agreement for Dugald River accommodation.
Left to right:
Executive General Manager Business Development Michael Nossal (MMG Dugald River), Chief Financial Officer David Lamont (MMG Dugald River), Managing Director Michael Lui (Minmetals Australia), Director Richard Lan (Minmetals Australia) and Senior Manager - Major Projects & Steel Trade Stephen Treharne (Minmetals Australia)
Download high resolution image.
T +61 3 9288 0996
M +61 400 481 868
Group Manager - Investor Relations
T +61 3 9288 9165
M +61 422 963 652
Chinese language media and investor enquiries:
Corporate Affairs Officer – HK & China
T +61 3 9288 0818
M +61 411 465 468