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Tellus Holdings awards $50M kaolin mine construction

Infrastructure development company Tellus Holdings has awarded a $50 million engineering, procurement and construction (EPC) contract for its Sandy Ridge Project in WA.

GR Engineering services has been selected for the contract, which will commence in two stages to align with regulatory approvals.

The project is a kaolin mining operation which will include a waste facility for the permanent storage of hazardous waste. It will require the commissioning of the waste cell infrastructure, access roads, raw water supply and other key infrastructure for the waste facility.

Stage one construction works will include engineering, design and long lead procurement activities, including the manufacturing of the cell air dome and foundation blocks.

Stage two construction works will include the engineering, procurement, construction commission and testing of the site infrastructure. This includes mining the first open cut kaolin pit, container yards, site warehouses and offices, roads, a 71-room accommodation village and associated utilities.

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Additionally, Tellus has also awarded program management company Turner & Townsend for its $2 million project management consultant (PMC) contract. Turner & Townsend will support Tellus in managing the development phase contracts, ancillary construction, equipment supply contracts and key operational contracts. Tellus plans to announce several of these contracts in the coming weeks.

Tellus GM Project Development Stephen Hosking said the signing of these two contracts will give Tellus stakeholders confidence that Australia’s first commercial dual open-cut kaolin mine and arid near surface geological waste repository will be built on time to the highest standards.

“These signed contracts meet key conditions precedent for the $102 million senior secured loan note subscription facility that was signed on the 21st December 2018. Tellus expects to announce additional detail on the final satisfaction of the conditions precedent and drawdown of the Debt Facility in the coming weeks”, he said.

Up to 100 jobs are expected to be generated by the construction phase of the project, with 80 jobs at peak operational manning supported by the accommodation camp.

Stage one enabling works will commence this month, followed by stage two construction expected to begin in early June 2019 and be fully operational by 2020.

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