ELB unit enters deal with China engineering firm
Groups announce a strategic partnership for mineral and metal process projects and associated infrastructure activities in sub-Saharan Africa
JSE-listed ELB Group subsidiary ELB Engineering Services and state-owned China ENFI Engineering Corporation (China ENFI) have announced a strategic partnership for mineral and metal process projects and associated infrastructure activities in sub-Saharan Africa.
The first venture the two groups will work on is the R5.4bn Gamsberg open-pit zinc project in the Northern Cape for global mining house Vedanta. No deal value was disclosed.
"The partnership enables ELB to extend [its] current capabilities and offerings deep into the minerals and metals processing sector," ELB Engineering Services CE Stephen Meijers said on Tuesday.
The announcement comes at a time that global mining companies are at the annual indaba in Cape Town, where SA has come under fire for its mining policies.
Vedanta said last week the Gamsberg project was entering the main construction phase. It said overall capital expenditure of $400m was considerably lower than the original estimate of $600m. Savings had been achieved by re-engineering the project, as well as deciding to go the contractor mining route.
Wei Jiaming, vice-president of China ENFI, said on Tuesday the partnership allowed the group better execution capability in Africa.