General view of the Sepon Copper project site, looking west.

Atmospheric leach area.

The165 t autoclave being loaded in Hamburg harbour.

Sepon Copper Project on schedule for commissioning in 2005

Construction of the copper hydrometallurgical-process
plant for Lane Xang Minerals Limited (LXML) in Laos is well underway and on schedule to enable commissioning and start-up for the production of the first batch of copper in the first quarter of 2005. This contract, worth in excess of US$160M, is being executed by a joint venture between Bateman BV and Ausenco Limited of Australia.

The design of the plant is based on the definitive feasibility study prepared by BATEMAN and it is being constructed close to the Khanong copper deposit in the Vilabouly district of Savannakhet province, next to the operating gold-processing plant, also owned by LXML.

Construction commenced last year with the upgrade of the 42 km access road. The site was cleared of unexploded ordnance and vegetation and the major earthworks were carried out. Concrete work started in October 2003, with the objective to complete it before the start of the 2004 monsoon season.

Tank construction is proceeding, with most of the tank materials being constructed out of duplex, super duplex or 316 stainless steel. Plate supplies are critical and were ordered early to meet the schedule. Structural and mechanical erection has commenced with the construction of steelwork for the pipe racks. This will be followed closely by equipment installation, piping and electrical installation.

Currently there are some 1 200 people on site for the construction, 35 of whom are the joint-venture management team. Approximately 600 local workers are employed on site, drawn from the surrounding villages. The remainder of the workforce are mostly expatriates from neighbouring countries. To date, some 2,3M manhours have been clocked up, with more than 1,5M manhours free of lost time incidents.

Equipment deliveries have started from suppliers and fabricators around the world. The largest piece of equipment on the project is the165 t autoclave which is being transported by ship from the German harbour of Hamburg to the port of Sattahip in Thailand (taking approximately 40 days), followed by land transit across Thailand and Laos to site, which will take approximately 30 days. This includes crossing the Mekong River in Laos by barge. A number of bridges in Laos have been strengthened to accommodate the autoclave load.

The design and construction of the project meets first-world environmental standards, in line with the continuing commitment by LXML, BATEMAN and the joint venture to the long term welfare of the Lao people.

For further details, please contact

Tony Cau, BATEMAN General Manager, Copper and Zinc, on
7-3320-3333 or email basemetals@batemanengineering.com.

LXML have also awarded the joint venture the construction management of the upgrade of the gold plant. This will double the capacity of the gold production facility and will be carried out in parallel with the copper plant construction. (Further details on this contract will be provided in a future issue of the Bateman Globe newsletter.)

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