Press releases

MDM project pipeline shift

MDM awarded LOI for detailed engineering and execution phase for African Barrick's Bulyanhulu expansion project

15 August 2012

MDM Engineering Group Limited (“MDM” or the “Company”) (AIM: MDM) the minerals process and project management company focused on the mining industry, is pleased to announce that it has received a Letter of Intent (“LOI”) for the award of the detailed engineering and execution phase for a 2.4 million tonnes per annum (“Mtpa”) gold plant for African Barrick Gold’s (“ABG”) Bulyanhulu Process Plant Expansion project in Tanzania.

ABG is the largest gold producer in Tanzania with a portfolio of four operating mines and is the operator and manager of Bulyanhulu Gold Mine, which is wholly owned by Bulyanhulu Gold Mine Limited, a 100% owned subsidiary of ABG.

A concentrator plant has been in operation at Bulyanhulu since commissioning in 2001.  During 2010, ABG completed a scoping study to determine the technical and economic viability of reclaiming and processing the stored tailings for recovery of gold and in August 2011 engaged MDM to undertake a Bankable Feasibility Study into the project.

MDM successfully completed the bankable feasibility study in December 2011 followed by value engineering in March and April 2012.  MDM will now execute the project which includes construction of a new 2.4Mtpa CIL (“carbon in leach”) facility to process tailings reclaimed from the historical tailings concurrently with current flotation tailings. The detailed engineering has commenced in order to maintain the project completion schedule.

 George Bennett, MDM Executive Director said:
 “MDM is thrilled to be working on the Bulyanhulu gold project in Tanzania. MDM will be able to bring the experience of the team’s 35 gold plants designed and built across Africa to date, including two 650 tonnes per month tailings plants built in the last three years. We look forward to a long working relationship with African Barrick Gold.”

Enquiries:

MDM Engineering Group Limited

Martin Smith (CEO)
George Bennett (Executive Director)
Dominique de la Roche (Finance Director)
Tel: +27 (0) 11 993 4300

Canaccord Genuity Limited

John Prior / Sebastian Jones
Tel: +44 (0)20 7523 8350

Tavistock Communications Limited

Jos Simson / Emily Fenton
Tel: +44 (0)20 7920 3150

KEY INFORMATION:

African Barrick Gold:
ABG is a UK public company with its headquarters in London. They are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa. It owns four producing mines, all located in northwest Tanzania, and several exploration projects at various stages of development. They have a high-quality asset base, solid growth opportunities and a clear strategy of optimising, expanding and growing their asset base. Maintaining ABG’s licence to operate through acting responsibly in relation to its people, the environment and the communities in which they operate is central to achieving their objectives.
www.africanbarrickgold.com

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