Mar 8 2007
Ausmelt Ltd has expanded its presence in the Former Soviet Union’s non-ferrous metals treatment industry by winning two new contracts.
The combined value of the contracts is about $3.4 million. Ausmelt Managing Director Mr Paul Abbott said some of this revenue would be incorporated in results for the current half-year and would have a favourable impact on earnings.
The first contract win was with a major metallurgical company in the Commonwealth of Independence States (formerly the Soviet Union) for detailed engineering design and site services. This contract is worth $3.2 million.
The contract is an extension of an earlier contract that the company won in July 2006 for basic engineering design and a technology licensing agreement, worth $2.4 million.
Work on the detailed engineering design is expected to begin in June 2007, following completion of basic engineering design.
Mr Abbott said today the company expected to negotiate stage three of the contract, covering equipment supply, in the September quarter of 2007.
The second contract win was with the Russian Copper Company which has commissioned Ausmelt to investigate the requirements for expanding the capacity of its existing Ausmelt copper smelter located at the Karabash Plant in the Chelyabinsk Region of the Russian Federation.
The Russian Copper Company recently started up the Ausmelt copper smelter in Russia.
The study that Ausmelt will undertake will investigate the requirements to expand the capacity of the smelter from 480,000 tonnes a year of low-grade copper concentrates to 1.5 million tpa of higher grade copper concentrates by 2009.