EPC Contract - Sandy Ridge Project

Company News

GR Engineering Services Limited (ASX:GNG) (GR Engineering) is pleased to announce that it has entered into an engineering, procurement and construction contract (Contract) with Tellus Holdings Ltd (Tellus), a public unlisted infrastructure development company in the business of developing geological repositories that provide waste storage, recovery and permanent isolation solutions and complementary salt and clay products. 

The Contract is for the engineering design, procurement and construction of infrastructure for a fully integrated facility for the long-term storage, recovery and permanent isolation of hazardous and intractable waste and an associated kaolin mining operation located approximately 75km northeast of Koolyanobbing, in the Shire of Coolgardie, within the goldfields region of Western Australia.

The Contract price is approximately $50 million, with the works to be delivered under a guaranteed maximum price (GMP) model. GR Engineering's scope of work under the Contract includes the engineering, procurement, construction and commissioning of the waste call infrastructure, access roads, raw water supply and other key facility infrastructure for the Sandy Ridge Project's underground waste facility. 

It is proposed that the Contract will be undertaken in two stages, with stage one comprising engineering and design and long lead procurement activities for the works, anticipated to comment in coming weeks, subject to the satisfaction of conditions precedent, which primarily relate to conditions associated with Tellus' proposed financing facilities.

Stage two execution of the works is intended to commence mid-calendar year 2019, subject to Tellus satisfying additional conditions relating to the balance of the Sandy Ridge project approvals.

Commenting on the Contract, GR Engineering's Managing Director, Mr Geoff Jones, said:

"We are pleased to progress this opportunity with Tellus, which has followed GR Engineering's involvement to date in the Sandy Ridge project's feasibility study and preliminary design work. Delivery of the project will enable GR Engineering to leverage its skillset in an innovative manner and diversify its industry exposures in a familiar location. We look forward to working with Tellus to safely and successfully deliver the Sandy Ridge Project."

ASX News Release 21/01/2019

To learn more about the Sandy Ridge Project, click here.