TORONTO, Ontario INCO LTD. has awarded the engineering, planning and services review contract for the Goro nickel-cobalt project in New Caledonia to C.E.G. Joint Venture, a 50-50 partnership of FOSTER WHEELER and SNC-LAVALIN. The contract is worth an estimated US$39.5 million.
The contract covers the second phase of work aimed at controlling development and operating costs to make Goro economically feasible. It involves furthering capital cost reductions identified in Phase One and establishing a project cost control estimate, updating the schedule, and optimizing and defining the scope and execution plan for the project. Phase Two will also include a value improvement program and more detailed engineering.
Goro is probably the best undeveloped laterite orebody in the world, having 54 million tonnes of proven and probable resources. Inco announced development plans for the project in 2001, but ballooning capital costs forced the company to reconsider its plans by the end of 2002. The two-phase plan to rework the project parameters will also reduce costs. More information is available at www.inco.com