Wolf Minerals has commenced a UK£75 million engineering procurement and construction with GR Engineering Services Limited for the development of its Hemerdon tungsten/tin project in Devon, south west England. This could result in a resumption of UK tin production from 2015. The mine is expected to produce 3,500tpy of wolframite tungsten concentrates with a grade of 65% WO3 and 450tpy of 40% tin concentrates.
The fixed price, fixed term contract is for the design, construction and commissioning of a 3 million tonnes per annum ore processing plant plus associated infrastructure, forming the key component of the Hemerdon project. The contract term is 24 months from the commencement date.
An initial drawdown of US$17 million of funds provided by shareholder Resource Capital Fund will be utilised by Wolf to commence the EPC contract, continue the purchase of properties on the site (required to be purchased under the terms of the Hemerdon project’s planning permission), to support owner’s development costs and to provide general working capital.
