Reed strikes procurement deal with Chinese group for Barrambie project

12 Nov 2010

Source  WA Business News
Reed Resources has entered into an agreement with Chinese conglomerate China Nonferrous Metal Industry's Foreign Engineering and Construction (NFC) for its Barrambie Vanadium Project.

The Memorandum of Understanding covers an engineering procurement and construction contract and financing for the project. As part of the deal, NFC and its WA engineering partner Arccon will provide a revised, fixed-price engineering procurement and construction contract estimate.

The Barrambie Vanadium Project is located between Sandstone and Meekathara in the Western Australian wheatbelt and is wholly owned by Reed Resources.

Vanadium is mainly used in the hardening of steel and as a result, demand is largely driven by the demand for steel.
Reed also expects to deliver significant savings on the original Definitive Feasibility Study cost of $628.9 million by using Chinese equipment and services.

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