Hazer Group Limited Announces Commencement of Site Works and Project Update
March 14, 2021 at 11:23 pm
Hazer Group advised that it has been granted access to the project site at the Woodman Point waste-water treatment facility for the Hazer
Commercial Demonstration Project (the Hazer CDP). Mobilisation of equipment, site-clearing and civil earthworks will commence this week. This is an important milestone for the Hazer CDP. During the first quarter of 2021, Hazer has continued to progress detailed engineering and procurement
activities to progress the Hazer CDP. Significant progress has been made on its primary focus area, the finalisation of the reactor and furnace detailed design packages and the award of these key contracts. With the placement of major packages order for the project nearing completion.
The increase in cost is due to a number of factors, including; an increased budget for the reactor and furnace
packages as the revised design has required more complex metallurgy to be able to safely deal with the
required process conditions, increased engineering costs to complete the detailed design due to the complexity
of issues required to be resolved to deliver this complex, first-of-its-kind technical project, increased costs for
some primary equipment items between initial budget prices and final pricing reflecting improved activity in
global markets as economies begin recovery from the covid-related slowdown in 2020 and increased labour
and equipment costs driven by the very strong activity levels in the West Australian economy. Together, these
factors have raised our budget forecast with an expected final range of $17.9 - $18.7 million.