A consortium headed by German firm Mannesmann Demag has won the bid to build and operate a ferrochrome plant in Tracy, Que., for Ressources Minieres Coleraine (ME). Demag is the world’s leading manufacturer of metallurgical furnaces.
The plant will process ore from Coleraine’s chromite property near Thetford Mines, Que.
Demag will provide equipment for constructing and operating the plant and will obtain all permits. It will also be responsible for startup and a 6-month training period for local workers. When Demag turns it over to Coleraine, the plant will be operating at full capacity.
Coleraine must now raise $48 million, which would cover the capital cost of the mine and plant, working capital for construction and startup, and operating costs over six months.
Coleraine anticipates it can raise the funds over six months, with construction expected to begin in winter, 1994. After the startup phase, which is expected to last two years, the plant will produce annually about 20,000 tons of ferrochrome with a 63-67% chrome content.
The project is expected to generate annual revenue of $20 million over a mine life of 15 years and provide 130 jobs.
Reserves are 1.03 million tonnes averaging 4.5% Cr2O3 and 0.17 grams platinum per tonne.
The bid represents the final stage in the feasibility study.
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