Salt Lake Potash Ltd (ASX:SO4) has awarded EPC and EPCM contracts to GR Engineering Services Ltd (GRES) (ASX:GNG) for construction of the process plant and non-process infrastructure (NPI) at its Lake Way Project in the Goldfields region of Western Australia.
These contracts, combined, represent more than 40% of the total project capital requirement.
The Engineering, Procurement and Construction (EPC) contract involves the provision of plant, labour, materials and construction services for the plant valued at A$85 million.
Salt Lake’s EPCM contract involves the provision of services for the EPC management (EPCM) for areas of the process plant and NPI valued at A$22 million.
“Pleased to have executed these contracts”
Chief executive officer Tony Swiericzuk said: “We are very pleased to have executed these contracts with GRES, who have been a critical contracting partner by our side throughout the design development of the Lake Way processing plant and off-lake infrastructure since early 2019.
“The finalisation of these major project contracts and the substantial engineering and procurement activity to date has further de-risked the Lake Way Project execution and confidence around the capital budget.”
Bulk earthworks complete
The project capital budget has increased marginally from A$254 million to A$264 million, including an unallocated A$18 million contingency.
Bulk earthworks for the site are complete, while major vendor procurement is 77% complete and offsite fabrication activities are substantially progressed.
Construction of the permanent 100-person village was completed in April, with an additional 160 rooms also now complete in preparation for construction ramp-up.
The EPCM and EPC contracts are conditional on financial close and GRES continue to advance project delivery under the existing early services arrangement.