JOHANNESBURG (miningweekly.com) – Ausdrill subsidiary African Mining Services (AMS) has been contracted to carry out all premining earthworks and openpit mining at Aim-listed Kefi Minerals’ Tulu Kapi project, in Ehtiopia.
Kefi and AMS would now jointly increase the efficiency of the detailed operating plan for the benefit of the project.
The contractual payment rate would be based on each cubic metre delivered, while direct purchases of certain key input costs such as explosives and fuel would be covered by Kefi.
The provisions for cost overruns and finance charges would be checked and allocated between the funding and contracting syndicate as part of finalising intercreditor arrangements.
Kefi on Tuesday said it had selected Australia-based Sedgman as the preferred plant construction engineering, procurement and construction management contractor for the 105 000-oz-a-year gold operation.
Sedgman was expected to start the front-end engineering design stage for the $63-million 1.5-million- to 1.7-million-tonne-a-year plant during the current quarter.