Quebec City-based Nemaska Lithium has received the independent audit report it asked Canadian engineering firm BBA to conduct. The results, says the company, validate its own internal cost-to-complete construction assessment as of Feb. 13, 2019.
Looking at the estimated capex, BBA made an assessment slightly lower than did Nemaska, which estimated a further $375 million is needed to complete the project. BBA also confirmed that the company has made certain internal changes and assigned the appropriate supplementary resources to strengthen control over construction activities and costs.
Nemaska has hired new, seasoned experts to the construction team, and it has streamlined and improved its project control processes. The entire project contract and procurement management function has been brought in house to ensure that contracting strategies are adapted to the current reduced pace of construction.
The audit was undertaken at the insistence of Clarksons Platou Securities and National Bank Financial as part of their due diligence in considering financial support for the Whabouchi mine and concentrator as well as the Shawinigan refinery.
(This article first appeared in the Canadian Mining Journal)
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