Sinoma International unit secures RMB 2.7 bn molybdenum mining contract

China National Building Materials International Engineering Co., Ltd. (Sinoma International) announced that its wholly-owned subsidiary, Yanhou Zhongcai Construction Co., Ltd., as part of a consortium, has signed a PC general contracting agreement for the Dashih River Molybdenum Mine Mining and Dressing Project with Jilin Jinshan Investment Co., Ltd. The contract is provisionally valued at RMB 2.7 billion.

The project, located in Dunhua City, Jilin Province, will focus on molybdenum mine mining and dressing, with a comprehensive processing capacity of 15,000 tons per day. The scope includes equipment and material procurement, construction, and project management. The total estimated construction period is 15 months, followed by a 3-month trial production, totaling 18 months from the issuance of the commencement order.

The contract also includes provisions for winter construction cost adjustments and a price adjustment mechanism for material costs. Price fluctuations of up to 10% will not trigger adjustments, while variations exceeding this threshold will lead to renegotiations for the portion above 10%.