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Highlights:
- PPX Mining Corp. announces an Engineering Procurement and Construction (EPC) agreement with Sertecpet de Peru S.A.
- The agreement covers detailed engineering, civil works, equipment purchasing, and mechanical installation for the Igor Project in Peru.
- The construction is aimed at developing a CIL and flotation plant, with penalties applied for any delays.
PPX Mining Corp. (TSXV:PPX), along with its subsidiaries, has taken a significant step in advancing its Igor Project located in La Libertad, Peru. The company has entered into an Engineering Procurement and Construction (EPC) agreement with Sertecpet de Peru S.A. This agreement highlights PPX’s commitment to expanding its operations in the mining sector by developing key infrastructure for its gold recovery processes.
Scope of Work and Engineering Plans
Under the agreement, Sertecpet will handle various essential tasks that are critical for the project’s advancement. The detailed engineering work is one of the key components of the EPC contract. This includes site preparation and the comprehensive civil works required for the crushing, grinding, leaching, and flotation systems. Additionally, concrete construction plays a pivotal role in ensuring the structural integrity of these systems.
The engineering scope also extends to the installation of specific units required for the plant's operation, which will enhance the processing capabilities of the Igor Project.
Procurement and Logistics
A vital aspect of the EPC contract involves equipment purchasing and logistics management. Sertecpet will be responsible for sourcing the necessary equipment as specified by PPX Mining Corp. Once purchased, the logistics and customs clearance of these materials will be overseen to ensure smooth delivery to the project site. This streamlined process is intended to keep construction on track and avoid unnecessary delays.
The agreement also includes the purchasing of construction materials, which covers the logistical arrangements required for their transport to the site. Such a well-coordinated procurement strategy is crucial in large-scale mining projects where efficiency in resource management can significantly impact overall progress.
Mechanical Installation and Electrical Works
Mechanical installation is another major focus under the EPC contract. Sertecpet will be responsible for the installation of crushing, grinding, and flotation units, which are critical to the plant's operational success. The installation of electrical systems and piping is integrated into this phase, ensuring that all essential systems are ready for operation.
A qualified subcontractor will be engaged to install the carbon treatment system, which includes the desorption plant. This system is vital for the gold recovery process, making it a key part of the project's operational goals.
Infrastructure and Additional Construction
While Sertecpet will focus on the engineering and mechanical components, other contractors will handle the construction of office buildings, workshops, and accommodation facilities. These additional structures are necessary to support the workforce and operations at the Igor Project site. Furthermore, contractors will be responsible for building the leaching tanks, tailings storage area, and ensuring access to water and power supply. These elements are critical for maintaining operational stability and environmental compliance throughout the project’s duration.
Contract Details and Project Timeline
The overall budget for the EPC contract is valued at US$5.7 million, with the addition of applicable sales taxes. The contract includes guarantees for construction completion within the agreed timelines. Should there be any delays in meeting these deadlines, the contract stipulates daily penalties for late delivery, ensuring accountability throughout the construction phase.
