$130M DEAL FOR AUSENCO

MINING services company Ausenco Limited (AAX) has signed a US$130 million engineering, procurement and construction contract in the Democratic Republic of Congo.

CFO Craig Allen, says the contract for Anvil Mining Limited’s (AVM) Kinsevere Stage II copper project comes later than Ausenco was aiming for, but is a positive sign for the copper industry in Africa.

“We’ve seen a slowing down or a more considered decision-making from clients for project development occurring over the last 12 months or so,” says Allen.

“But this is a good sign from the African perspective that projects are up and running - we’ve got a suite of projects through that region and at Kinsevere we’re at the capital commitment stage, which is positive.”

Allen says the project was suspended in late-2008 but engineering work recommenced July 2009. He expects a project delivery date by December 21, 2010.

He says the project is geographically far from the problems with rebels in the north of DR Congo.

“In northern Congo you’ve got more problems with rebels, but in the southern copper belt along the Zambian border it’s a little more stable. We take the normal precautions on employee safety, we don’t shy away from that, but it’s a little more stable environment,” he says.

CEO Zimi Meka (pictured), says the contract recognises the successful efforts of both parties and represents increasing confidence in the base metals sector.

“Generally, tendering and pre-qualification activities on a range of potential project opportunities has increased in recent weeks and we remain confident of Ausenco’s growth into 2010 and 2011,” says Meka.