Perth based CPC Engineering has been appointed by ASX listed Syrah Resources Ltd (ASX: SYR) (“Syrah” or “the Company”) to complete the Front End Engineering Design on the Balama Graphite and Vanadium Project in Mozambique.
The flagship project hosts the largest graphite ore reserve in the world of 81.4 Mt grading 16.2% graphitic content. It is located approximately 260 km west of the regional city of Pemba in the Cabo Delgado province in northern Mozambique. When in full production Syrah will export approximately 380,000 tonnes of concentrate per year grading 95% graphitic content through the deep water container port of Nacala.
CPC’s role will be to further optimise and de-risk the development plan as well as bringing greater certainty to the timing of key capital equipment.
On the appointment by Syrah CPC Engineering Chief Executive Officer Glen Weir said “this is an important part of our growth strategy and continues CPC’s emerging achievements in the minerals resource sector. We look forward to being part of Syrah’s successful execution of the Balama Project”.
Initial capex for the project has been calculated at US$138 million – to be paid back in under two years – with a post-tax net present value of US$1.1 billion. Average cash operating costs over the life of mine are US$286 per tonne of the high-grade, open-pit produced graphitic ore.
CPC is currently providing engineering and design services for First Quantum Minerals Enterprise Nickel plant in Zambia and has also recently completed key project work at Sandfire Resource’s DeGrussa copper mine. The company has also just delivered the construction of the crusher circuit and mill building at the Tropicana gold mine some 300 km east of Kalgoorlie.
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