Outotec signs another long-term operation and
Outotec has signed a six-year service contract with ZAO Tominsky GOK, which is a part Russian Copper Company Group (RCC), for the future operation and maintenance of the flotation plant, dewatering and reagent departments of Tominsky copper concentrator, currently under design by Outotec. The contract value is about EUR 100 million, which will be gradually booked in Outotec's order intake starting in the second half of 2014. The main part of the contract will be invoiced as cost/ton according to the tonnage of the ore processed starting from concentrator plant production start-up, from autumn 2015.
Similar service contract Outotec made with CJSC "Mikheevsky GOK" in January 2013. These agreements demonstrate Outotec's life cycle oriented approach and Outotec's ability to provide comprehensive service solutions spanning from spare parts supply to continuous process optimization and responsibility for a plant's operations, including all systems, personnel and subcontractor management.
The operation and maintenance contract follows Outotec's earlier EUR 50 million contracts from May 2013 for the process design and engineering of the entire Tominsky concentrator and the delivery of the main process equipment for flotation and dewatering, process automation, instrumentation and electrification.
Once operational by autumn 2015, the concentrator will treat 17 million tonnes of copper ore annually. Approximately 100 Outotec's operation and maintenance personnel will be working at the Tominsky site and Outotec's Yekaterinburg and St. Petersburg service centers, supported by Outotec's global organization.
As part of the signed contract, Outotec will supply spare and wear parts and reagents for the equipment under its scope of delivery, as well as operation and maintenance management systems for the concentrator, including remote monitoring combined with Outotec Proscon® process automation. This enables efficient plant operation and process optimization for recovery, concentrate grade and reagent consumption.
The new service contract is expected to provide significant cost saving synergies for Tominsky GOK, adding to the benefits of the Mikheevsky GOK concentrator service delivery agreed earlier this year. For example, it will enable the utilization of tailored training platforms and maintenance planning to enhance a faster production ramp-up.
"Outotec Operation and Maintenance Service will ensure that the process parameters can be maintained and further improved during the entire contract period. These two similar kinds of service contracts will bring substantial synergies", says Vsevolod V. Levin, President of Russian Copper Company.
"This second long-term operation and maintenance contract demonstrates our close strategic partnership with Russian Copper Company and our ambition to provide added value to our customers through life cycle solutions. We have provided modern technology and together developed their various operations already for twenty years. I am very pleased that with these service contracts we can support RCC throughout the life cycle of their plants. In this way the company will get the best possible return on their investment with minimized environmental impact. The two new concentrators operated and maintained by Outotec will produce copper concentrate with low lifetime operating cost, enabling the sustainable added value for RCC", says Pertti Korhonen, President and CEO of Outotec.
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