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Rex signs key Korean deal

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Rex Minerals advanced project development negotiations for its Hillside Copper Project on South Australia’s Yorke Peninsula with a contract signing in Seoul yesterday.

Korea-based Hyundai and AMEC have been awarded “Early Contractor Involvement” (ECI) in the Hillside project and will now produce the project execution strategy, the project schedule and the final price for the main Engineering, Procurement and Construction (EPC) contract.

The deal includes support for Korean financing of the project’s debt funding.

Rex now has two competing construction bids; in June last year Rex signed a Memorandum of Understanding with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (NFC) and its Australian based subcontractor Arccon (WA) Pty Ltd.

Rex’s Managing Director Mark Parry said the company was aiming to begin copper production in 2016.

“We have a very busy period ahead of us with a number of project elements to be brought together and crystallised,” Parry said an announcement to the stock exchange.

“We continue to work towards finalising the Bankable Feasibility Study, we are working closely with the State Government to secure regulatory approvals and we have a range of ongoing discussions to secure debt and equity funding, including with potential offtake partners and export credit.”

In a separate announcement, Hyundai said its engineering and mining divisions were pleased to see their efforts recognised with ECI approval.

“By securing of this Hillside Copper Project ECI, Hyundai-AMEC is well positioned to secure the main EPC Works in 2014,” the company said.

“Rex is planning to seek part of the project debt funding from the financial institutions in Korea, with support from HDEC and HRC.”

HDEC, as a member of the Hyundai Motor Group, has been a major construction group in Korea for more than 66 years.

It has become a leading player in the world construction market, carrying out total 781 projects in 56 countries.

Total overseas contract amounts by this year are worth over US$100 billion.

 

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