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Liontown awards final lithium project construction contracts to Monadelphous

Published by , Editor
Global Mining Review,


Liontown Resources Ltd has announced the award of the vertically integrated wet plant structural, mechanical, and piping (SMP) and electrical and instrumentation (E&I) contract to Monadelphous Group Ltd.

Awarding the final construction contract is a significant milestone for the Kathleen Valley Lithium Project. Together, the value of the contract is approximately AUS$100 million over nine months.

Highlights:

  • Appointment of Tier-1 engineering and construction company Monadelphous enables a vertically integrated approach to construction of the critical path wet plant.
  • The value of the contract is approximately AUS$100 million and includes carbon steel pipe fabrication and signifies the final major construction contract award for Kathleen Valley.
  • Monadelphous commenced work under a Letter of Intent and began mobilising to site in August under a staged contractual award approach.

Combining the SMP and E&I work enables vertical integration of mechanical and electrical construction of the wet plant, providing efficiencies and underpinning confidence in the schedule to first production in mid-2024.

The contract scope includes installation of 1200 t of structural steel, 20 000 m of piping, 600 mechanical equipment items, 200 platework items, the SAG mill, magnetics circuit, flotation circuit, tantalum recovery circuit, concentrate dewatering, and tails treatment.

By deploying lessons learned from industry peers the wet plant has been designed to a high specification with quality and hard-wearing materials, including polyurethane-lined steel piping and ceramic lined highwear areas, designed to reduce future maintenance requirements. In addition, the adoption of the lessons learned will be applied during the commissioning and ramp up of the plant.

The extensive tender and evaluation process reflects the importance of these critical path contracts to delivering first production.

Tony Ottaviano, Liontown’s Managing Director and CEO, comments:

“I’m pleased to announce that we have awarded the SMP and E&I contract to Tier-1 contractor Monadelphous. Valued at approximately AUS$100 million this marks the final major construction contract to be awarded for Kathleen Valley.

“The vertically integrated approach of combining the SMP and E&I packages enables Monadelphous to efficiently deliver both programmes of work to a very high standard and played a large part in its successful tender.

“Monadelphous has a large resources pool, experience in the hard rock lithium sector, and a proven track record of delivering large-scale multi-disciplinary projects in Western Australia, which came through strongly throughout the evaluation process. Their demonstrated skills, capability and professionalism reflects Liontown’s expectations of a partnership. There is a clear line of sight to first spodumene production mid-next year.”

Read the article online at: https://www.globalminingreview.com/mining/15092023/liontown-awards-final-lithium-project-construction-contracts-to-monadelphous/

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This article has been tagged under the following:

Australian mining news Lithium mining news Mining equipment news