13 February 2013 17:21 [Source: ICIS news]
LONDON (ICIS)-Sirius Minerals has pushed back completion of the definite feasibility study at its Yorkshire-based potash project to the second quarter of 2013 as it plans to switch to an Engineering Procurement Construction Management (EPCM) model, the Global mining company said on Wednesday.
The project’s director, Alan Watling, will step down as a result and a new development director will be appointed under the new model, the company said. The company did not elaborate any further on the appointment.
"The EPCM/EPC implementation approach adds value to the York Potash Project by matching the contracting implementation methodology to the project design,” Chris Fraser, managing director and CEO of Sirius said.
"Moving to this methodology has enabled us to collate more technical data prior to undertaking the major components of the definitive feasibility study," Fraser added.
The decision is in line with a project study that was released in December 2012, and shifting to the EPCM model will lower costs and risks associated with the project, the company said.
The estimated capital cost of the first phase of production will now be reduced by $1bn (€740m) to $1.7bn from $2.7bn as a result of the switch, the company said.
($1 = €0.74)
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