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
in Baja 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).
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.

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 -