Press releases

MDM Engineering awarded contract for full EPCM contract for the Kalukundi project in the DRC

4 July 2007

Johannesburg, 4 July 2007: MDM Engineering Limited announced today that the company has received a letter of intent to be awarded the contract for the full EPCM (Engineering, Procurement, Construction and Management) programme for the Kalukundi project in the Democratic Republic of Congo (DRC). MDM Engineering completed the bankable feasibility study on this project in May 2006 on behalf of Africo Resources Limited, and the award of the EPCM contract continues the project work already underway in the Front End Engineering and Design (FEED) programme.

The award of the EPCM contract is subject to the successful resolution of Africo’s legal dispute over the ownership of the Kalukundi asset, Africo raising the required debt and equity for the project and the negotiation of terms between MDM Engineering and Africo Resources. MDM Engineering is fully aware of the legal dispute that has arisen with respect to a third party claiming ownership of Africo Resources’ stake in Kalukundi and the company fully expects a favourable outcome once due legal process has been completed in the DRC.

The Kalukundi project is a high-grade copper-cobalt project located in the Katangan Copperbelt and will, at full production, produce 16,400t copper and 3,800t cobalt per annum.

The EPCM contract, which is valued at some US$170 million, involves the complete design and construction of the Kalukundi plant and associated infrastructure. The work defined by the EPCM contract will build on the work completed during the FEED programme, which is taking place over a period of three months and is valued at US$1.9 million. Key deliverables included in this scope of work are: detailed process design, plant layout, control budget estimation and selection of suitable sub-contractors and suppliers.

MDM Engineering CEO, George Bennett, said that MDM Engineering was pleased with this development, which was one of a number of such projects that MDM Engineering has recently won. “One of MDM’s core strengths is our flexibility in undertaking the initial work on projects and carrying this approach through to the full EPCM contract. We pride ourselves on our interactive attitude and place a great deal of emphasis on technical innovation, lateral thinking and attention to detail.”

Currently, MDM Engineering is involved in various projects totaling some US$400 million and the company is considering a listing on an international exchange later in the year.


George Bennett
Chief Executive Officer
Tel: +27 11 886 7980

Note to editors

MDM Engineering Limited (MDM Engineering) is a BVI registered, mining and metallurgical engineering company which was established in February 2006. The company has an enterprise value of some US$12 million and US$3.5 million in working capital and is currently negotiating to become a member of the Amari Holdings Limited Group, a resource investment company with a balance sheet in excess of US$100 million. MDM Engineering has a team with 18 years of operational experience. The company was formed by George Bennett (now Chief Executive of MDM Engineering) and Mike Nunn (now a non-executive director of MDM Engineering) who purchased the intellectual capital and data from MDM (Pty) Ltd and employed key staff from MDM Ferroman (Pty) Ltd, after the latter company had been placed in provisional liquidation.

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