Clough and Kerman appointed as ECI contractors for Sandy Ridge Project
- Clough and Kerman appointed as Lead ECI Contractors for the $61.4 million Sandy Ridge Project
- In stage one, Lead Contractors to provide BFS engineering, cost estimation & scheduling services
- Lead Contractors will be supported by Mining Plus and other Consultants
- In stage two, if the EPC contract is accepted, Clough and Kerman will form a JV to become the principal contractor
Tellus Holdings Ltd (“Tellus”) is pleased to announce it has taken a major step towards developing the $61.4 million Sandy Ridge project by appointing Clough Projects Australia Pty Ltd (“Clough”), Kerman Contracting Pty Ltd (“Kerman”) and Mining Plus Pty Ltd (“Mining Plus”) in a two stage Early Contractor Involvement (ECI) basis.
ECI involves early project collaboration in two stages.
In stage one, the contractors join the Sandy Ridge bankable feasibility study team (BFS) where they bring expertise in planning, construction, cost estimating and value engineering. This ensures that the project plan is on the right track before the Engineering Procurement Construction (EPC) contract is finalised and issued in stage two.
“This two stage ECI model gives Tellus greater certainty on delivering the project on time and on budget,” Managing Director Duncan van der Merwe said.
“Clough and Kerman will be providing design engineering, capital cost estimation, construction scheduling and documentation to selected chapters of the bankable feasibility study in accordance with their respective areas of responsibility. An open-book bankable Joint Venture EPC cost proposal will also be delivered. It is the intention of the parties that in stage two, if the EPC contract is accepted, Clough should become the principal contractor of the JV at Sandy Ridge” he said.
“Both Clough and Kerman have demonstrated their ability to successfully maximise the life and profitability of their clients’ assets by optimising design and operations. They both bring multi-discipline experience, a strong safety culture, a track record buying and hiring locally and an active indigenous employment program which aligns with Tellus’ objective of developing our Sandy Ridge Project,” he said.
Mining Plus will provide detailed design, capital and operational cost estimation, along with construction and operational scheduling within the BFS for the mining and cell areas. Mining Plus will help develop and assess EPC proposals by mining contractors, also included within the BFS.
Clough Group
Established in 1919 Clough’s services are underpinned by a dedication to project delivery excellence that has spanned over 95 years. Based in Perth Australia, Clough provides engineering, procurement, construction, commissioning, operations and maintenance services for oil and gas, metals and mining and infrastructure developments. Clough manages a global workforce from operating centres across Australia, Asia, Africa the UK and the USA.
Bigger picture – Sandy Ridge and Chandler development
“As part of a bigger picture, the infrastructure at our Sandy Ridge project is similar to our Chandler project in the Northern Territory,” Mr van der Merwe said. “The main difference at Chandler is that we are looking at developing both vertical and decline shafts. Tellus is looking at bringing the lessons learnt from Sandy Ridge over to Chandler where we are planning a similar ECI model. Subject to commercial terms being agreed at Chandler, if the EPC contract is accepted, Clough should become the principal contractor with the support from RUC Cementation Mining (RUC), who are vertical and decline shaft system contractors based in Perth, and other contractors. Both Clough and RUC are wholly owned subsidiaries of the Murray & Roberts Group”.
About Clough:
Clough works with some of the world’s largest companies to engineer, construct, commission and maintain critical facilities for oil and gas, metals and minerals, and infrastructure sectors. Clough’s full project lifecycle delivery model reduces risk and optimises safety, productivity and cost across every phase of a project. Backed by an experienced leadership team, talented people and sophisticated project management systems, Clough is committed to safety, sustainable development and the wellbeing of the people, communities and environments. Clough is a wholly owned subsidiary of Murray & Roberts, South Africa’s leading engineering and construction services company, with 17,000 employees, a presence on five continents and in FY 2016 had a revenue of approximately A$ 2.5 billion.
About Kerman:
Established in 1981, Kerman is one of the most experienced design and construction firms in Western Australia. Specialising in non-process infrastructure, processing plants, bulk storage and materials handling facilities, industrial facilities and accommodation villages. Kerman’s point of difference is their ability to leverage over 30 years of their design, engineering, construction experience and knowledge to provide cost effective, innovative design and construction solutions for the benefit of their clients.
About Mining Plus:
Consisting of consultants specialising in mining engineering, environmental science, geoscience, mine safety and risk assessment, Mining Plus has grown to become a significant industry player led by an experienced leadership team since its establishment in 2006. Now an international consulting firm with offices spanning across Australia, Canada and Peru, Mining Plus operates on a global scale applying a combination of technical expertise and practical experience to exploration and mining projects, whilst providing detailed, accurate and timely studies and services to support strategic and operational needs.
About Tellus Holdings:
Tellus Holdings Ltd is an infrastructure project development company with a proposed dual revenue infrastructure business model. This involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long- term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe, USA and Canada. Tellus is developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia. Tellus’ flagship ‘Chandler Project’ has been awarded Major Project Status by the Northern Territory Government.
For further information:
Visit: www.tellusholdings.com.au or contact:
Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395
Corporate and Chandler Project:
Jane Munday
Michels Warren Munday (Media)
Mob: +61 (0)427 880 083
Sandy Ridge Project:
Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888
