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Paringa signs EPC contract for Poplar Grove’s coal handling and prep plant

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World Coal,

Paringa Resources has signed a fixed price turnkey contract for the design, procurement, construction and commissioning of the Poplar Grove mine’s coal handling and preparation plant and barge loadout facility on the Green River.

The fixed price contract totals US$21.8 million, which represents CAPEX savings of US$1.2 million when compared to the final CAPEX cost estimate in the final bankable feasibility study (BFS) release on the Australian Securities Exchange (ASX) on 28 March.

The company has reported that all major contracts for the development of the Polar Grove mine have now been awarded on a fixed price basis significantly reducing pricing and timing risk.

Paringa’s Managing Director and CEO Grant Quasha said: “Following an exhaustive and competitive final bidding process, we have now awarded all major contracts for the construction of the permitted and fully financed Poplar Grove mine. I am very pleased to see these contracts executed on a fixed price basis, significantly mitigating price and timing risk. We are highly confident that the total capital expenditure for the Poplar Grove mine will come under the amount budgeted in the final BFS for which we also financed an additional 10% contingency which remains untapped.”

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