Pilbara iron ore developer Aurox Resources Limited (AXO) today announced it has entered into a binding Heads of Agreement with MCC in relation to proposed arrangements for the provision of EPC services and assistance with the provision of debt finance for the development of the Balla Balla project. MCC is China’s leading mining engineering services provider. MCC is heavily involved in EPC contracting, development of natural resources, equipment fabrication and related services. In particular, MCC is the most experienced Chinese provider of these services in Australia having been involved in Sino Iron, Cape Lambert, and now the China First projects.
Managing Director of Aurox, Mr Charles Schaus, said the time spent over the past two years advancing the Balla Balla project was instrumental in attracting such a high quality partner. “Aurox is delighted that the quality of Balla Balla has been recognised by a leading Chinese multinational, and we look forward to working with MCC to bring Balla Balla to fruition,” Mr Schaus said. “MCC has a strong track-record in delivering both quality EPC services and in assisting with the arranging of debt finance as we’ve seen with their other projects both in Australia and overseas. This is a very positive step towards the full financing and construction of the world-class Balla Balla project,” he said. “Today’s announcement also validates management’s view that the original cost estimates for the project could be significantly reduced, and also the value of having a strong EPC partner in China such as MCC,” he said.
The Agreement provides a clear framework for the refinement of a scope of work for the provision of EPC services and financing milestones. It is expected that MCC’s services will be supported by Australian construction and design contractors.
Tags: Aurox Resources, AXO, Iron Ore, JV Agreement, mining
