$1.3b Dubbo Project financing dependent on signed contracts

Reticent customers are holding back the construction of stage one of the $1.3 billion Dubbo Project at Toongi.

But in a show of confidence and determination, Australian Strategic Metals (ASM), a wholly-owned subsidiary of Alkane Resources, has utilised “local contractors” in preparing for the project’s early works.

Alkane Resources’ latest community newsletter on the Dubbo Project includes a frank analysis of why it has not progressed to the construction phase.

“The Dubbo Project is ready for the first stage of construction, detailed engineering design and early works, but waiting for financing,” it reads. “Customers have not yet committed to the contracts that institutional lenders want to see before funding a project of this kind.

“The Alkane team is busy negotiating with customers, while educating potential investors about the excellent, long-term value of this special project. Meanwhile, global prices for the Dubbo Project’s products are rising rapidly.”

Customers have not yet committed to the contracts that institutional lenders want to see before funding a project of this kind.

Alkane Resources

The early works schedule includes major changes to Obley Road.  Alkane Resources reports of ASM using Langford & Rowe to survey the tighter bends along Obley Road, to help engineers “redesign the road to 110km/h standard”.

“The speed limit will be 100km/h but government guidelines require a 10 per cent safety margin,” Alkane Resources reports in its newsletter. “Dubbo Regional Council must approve the design before the road construction project can be released for tender.”

Macquarie Geotech, which has a laboratory in Dubbo, has helped establish the quality of basalt in a small quarry within the footprint of the proposed project. The basalt has been earmarked for on-site construction materials such as sheeting for roads and lining for drains. Fence Pro rural contractors have also begun a 14-month program of fencing off biodiversity offset areas.

Comments