Last checked at 
(Alliance News) - Cadence Minerals PLC said Monday its joint venture partner over the Yangibana rare earth project, Hastings Technology Metals, has awarded a contract to engineering and project delivery firm DRA Pacific Pty Ltd.
The engineering, procurement, construction and management contract is for the Yangibana rare earths processing plant and its associated infrastructure.
DRA's contract will cover all aspects of the design and construction of the processing facility and associated non-process infrastructure capable of producing 15,000 tonnes of mixed rare earths carbonate per year.
The works directed under the EPCM contract have an estimated capital value of AUD350 million, or USD240.1 million.
"The appointment of DRA Pacific represents a key step for Yangibana. Not only is it key to the project funding going forward, the EPCM contract terms include a comprehensive performance guarantee linked to ore throughput. Today's announcement provides further validation for our investment strategy into the Yangibana joint venture with Hastings," said Cadence Chief Executive Officer Kiran Morzaria.
Shares in Cadence Minerals were up 3.0% at 8.50 pence in London on Tuesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.