Baja Selects ICA Fluor to Perform EPCM at Boleo
ICA Fluor has been selected to handle EPCM responsibilities for the Boleo Cu-Co-Zn-Mg mine project
Baja Mining has signed a letter of intent
with ICA Fluor to perform the engineering,
procurement and construction management
(EPCM) for Baja’s Boleo coppercobalt-
zinc-manganese mining project
near Santa Rosalia, Baja California Sur,
Mexico. ICA Fluor’s work will be performed
in two phases. Phase I will consist of the
development of an open-book capital cost
estimate and project construction schedule.
The cost estimate will reflect current
market conditions and be supported by
work performed to date (about 30% of
engineering has been completed). The
Phase I capital cost estimate will be subject
to independent third-party review and
is expected to be completed by the end of
the third quarter of 2009.
California Sur, Mexico. Baja Mining owns 70% interest in the project and will be the operator;
a Korean syndicate
owns the remaining 30%. (Photo courtesy of Baja Mining).
Phase II will include the execution of
engineering, procurement and construction
management necessary to bring the project
into production. Baja and ICA Fluor are
negotiating an interim Memorandum of
Understanding that will include the general
terms and conditions of a reimbursable
EPCM contract. Phase II will commence
upon completion of construction financing.
Baja Mining holds a 70% interest in the
Boleo project. A Korean syndicate holds
the remaining 30%. Baja is the project
operator. A 2007 definitive feasibility
study projected an average annual production
for the first four years of 56,000 mt of
copper cathodes, 1,500 mt of cobalt cathodes
and 20,000 mt of zinc sulphate. The
project has proven and probable reserves to
support a mine life of more than 25 years.
Anticipated cash costs in the first five
years are $0.27/lb of copper, net of byproduct
credits for cobalt and zinc and
with no credit for manganese. The current
target date for commissioning is 2011.
As featured in Womp 2009 Vol 05 - www.womp-int.com