Sedgman Awarded Design Contract for Barroso Lithium Concentrator in Portugal

en.Wedoany.com Reported - On October 12, Sedgman's parent group announced that Sedgman has been awarded the Front-End Engineering Design (FEED) contract for the concentrator at Savannah Resources' Barroso lithium project in Portugal. The scope of work covers process optimization, preparation of design documents, and procurement management for 13 long-lead equipment packages. The FEED is scheduled to run for 8 months, the contract value has not been disclosed, and the project remains in the engineering preparation stage ahead of a Final Investment Decision (FID).

Sedgman previously participated in metallurgical testing, process flowsheet development, and concentrator design during the Definitive Feasibility Study (DFS) stage of the Barroso project. This contract will build on the DFS results to further optimize the process flowsheet and equipment configuration. The design scope includes ore crushing, grinding, dense medium separation, flotation, dewatering, water treatment systems, and supporting infrastructure for the concentrator.

The FEED work will be implemented in three phases. Phase 1 involves optimizing the DFS process design, refining engineering documents, and preparing tender technical specifications and data sheets for key long-lead equipment; Phase 2 involves organizing tendering, bid evaluation, and award recommendations for 13 equipment procurement packages; Phase 3 involves supplier contract management to obtain equipment technical documentation suitable for construction.

Savannah Resources plans to use approximately US$53 million in cash and short-term funding reserves to pay for long-lead equipment advance payments and related costs. The company also plans to recruit approximately 30 employees over the coming months for positions including engineering project management, procurement, contract management, construction planning, and health, safety and environmental management.

The Definitive Feasibility Study for Phase 1 of the Barroso lithium project is expected to produce approximately 2.56 million tonnes of spodumene concentrate over a 14-year production life, equivalent to an average of approximately 183,000 tonnes per year. The project has been included by the European Commission in the list of strategic projects under the Critical Raw Materials Act, and is currently advancing engineering design of the concentrator facilities and pre-construction procurement preparation.