Perth-based engineering, construction, and asset management company Lycopodium (ASX:LYL) has been selected as a preferred tenderer by Barrick Gold (NYSE:GOLD) to deliver a Feasibility Study and a basic engineering agreement at the Reko Diq Copper-Gold Project in Pakistan.
The $55 million contract is currently being finalised between the parties, with work expected to begin on 22 May 2023. The Feasibility Study is scheduled for completion in Q4 2024, while the basic engineering will start in October 2024 and is set to be complete in Q2 2025.
Lycopodium says the project is expected to be completed in 2 phases. Phase one will be based on a copper concentrator with a processing capacity of 40 million tonnes per annum and associated infrastructure including onshore port facilities, and a 7,500 person accommodation camp. Phase two will see throughput increased to 80 million tonnes per annum.
The company reports it will coordinate the overall Feasibility Study for both phases, providing the study deliverables to support the No 43-101 technical reports. Basic engineering will only be performed on phase one of the project.
Lycopodium also says it will be responsible for the coordination and interface management of all Barrick engaged sub-consultants providing inputs into the Feasibility Study.
The Reko Diq Copper-Gold Project is considered by the company to be one of the largest undeveloped copper-gold deposits in the world. The project is in the Tethyan Belt in the northwest corner of Pakistan’s Balochistan province.
“This project will unlock one of the largest undeveloped copper assets in the world, and we are extremely proud to be given this opportunity to work with Barrick to bring this exciting and meaningful project into fruition”
Commenting on the contract, Lycopodium Managing Director Peter De Leo says: “The construction and operation of the Reko Diq Mine will significantly contribute to Pakistan’s economy, in particular benefiting from the underdeveloped Balochistan province in the creation of jobs and investment in regional development programs.
This project will unlock one of the largest undeveloped copper assets in the world, and we are extremely proud to be given this opportunity to work with Barrick to bring this exciting and meaningful project into fruition.”
Lycopodium says the award builds on its ‘significant’ copper concentrator experience, with recent projects including Cobré Panama and the Batu Hijau plant expansion in Indonesia.
Lycopodium is an ASX-listed engineering, construction, and asset management company that specialises in delivering complex, multidisciplinary projects through to the provision of Feasibility Studies and advisory services.
Barrick Gold is a Canadian gold and copper producer with assets across North America, Central America, South America, Africa, and the Middle East. Some of these projects include Reko Diq Copper-Gold, Jabal Sayid, Hemlo, Nevada Gold Mines, Pueblo Viejo, and Lumwana projects.
Images: Lycopodium Ltd
