Queensland based resource sector services company Sedgman has secured a contract to engineer, procure and construct a new processing plant for Discovery Metals flagship Boseto Copper Project in Botswana.

The project lies 80 kilometers south west of the town of Maun in Botswana’s North West and is being delivered by Sedgman under a contract signed between Sedgman South Africa and Discovery Metals’ Botswana subsidiary Discovery Copper Botswana.

Sedgman’s initial scope of works under the contract includes Front End Engineering Design and related metallurgical testing for the copper flotation plant.

Subject to DML’s approval, the scope of works will then be expanded to include detailed design, procurement and construction of the plant and associated infrastructure including the bore field development. The total estimated value of all works is approximately USD 85 million.

Mr Mark Read MD of Sedgman said that the contract win is particularly significant for the Company’s Metals Division given the competitive tender process involved and the opportunity to showcase its capability within the international market.

He said that we have been particularly encouraged by the number of studies the Metals Division is currently working on, supporting our view that the metalliferous sector is starting to mirror all the signs of the strong recovery now evident within the coal sector. We look forward to developing a close working relationship with the team from Discovery Metals to deliver the Boseto Project on time and on budget and to expanding the metalliferous capability within our South African office in Johannesburg.

Mr Read said that award of the contract also acknowledges Sedgman’s approach to safety and the environment, design innovation and project execution. Importantly, the new Boseto contract follows on from the USD 150 million of Engineering, Procurement and Construction contracts won by Sedgman over the past 2 months.

He said that we expect to deliver the full scope of works for the Boseto project which further supports our positive growth outlook for 2011 and beyond, particularly as we continue to grow our order book and capitalize on the increasing number of project opportunities both in Australia and abroad.