Sedgman (SDM)

Shares / Stock Code

SDM

Stock Exchange / Sharemarket

ax

Sedgman (SDM) is a provider of multi-disciplinary engineering, project delivery and operations services to the global resources industry. SDM comprises the two core divisions of Coal and Metals. The core divisions are further divided into Engineering Services and Operations. SDM has a JV with Thiess Pty Ltd. It also operates in the metalliferous sector through its subsidiary Pac-Rim. SDM operates from offices in Queensland, Western Australia, China and Chile and also has representation in South Africa.

SDM was established in 1979 by John Sedgman. Since the mid-1980s, its focus has been the coal industry. In 2001, Theiss Pty Ltd acquired a 50% interest in SDM. The company was listed on the Australian stock market (ASX) on 8 June 2006. SDM expanded into the metalliferous sector in December 2006 with the acquisition of ore crushing and screening services provider, Pac-Rim. This was complemented with the purchase of a minerals process engineering and project management company, Internet Engineering, in July 2007.

SDM offers integrated CHPP (coal handling and preparation plants) services, including resources assessment, project development, engineering design, construction, operation and maintenance. The company is the market leader in the design, construction and operation of coal handling and preparation plants (CHPPs) and has gained international recognition for its coal processing and materials handling technologies.

Australian and international resource companies characterise the company's client base, which includes Anglo Coal Australia, BHP Billiton, Coeur d'Alene, First Quantum Minerals, Gold Fields Australia, Macarthur Coal, New Hope, Peabody, QCoal, Rio Tinto, Vale, Solid Energy, Thiess, Centennial Coal, Curragh Queensland Mining and Xstrata. Competitions include other multi-disciplinary engineering companies and coal processing and materials handling companies.

Palmarejo Silver Gold Project

Sedgman Metals Engineering is providing the detailed engineering and procurement (EP) services for the 2 Mt/a silver/gold flotation/CIL plant and associated infrastructure. The plant is expected to produce approximately 430 tonnes of silver and 130,000 ounces of gold per annum.

The project, located in the Sierra Madre Occidental Mountains, is especially challenging due to the nature of the region which has necessitated the mining of benches to accommodate the plant. Road access has also proved to be challenging with 200 km of mountain tracks being upgraded to a standard suitable for heavy equipment transport. Preliminary engineering commenced in September 2005 with environmental approval obtained and kickoff of detailed engineering in June 2006. The engineering phase of the project is now complete.

Jaguar Copper/Zinc Project

Sedgman Metals Engineering undertook a bankable feasibility study for the Jaguar project in 2005. In November 2005 Intermet Engineering provided engineering, procurement (EP) and commissioning services to complete detailed engineering and procurement of the Jaguar Copper/Zinc Project. The flotation plant, capable of a throughput 365 kt/a, involved the relocation of the decommissioned Cadjebut flotation plant with suitable modifications to meet the metallurgical requirements of the Jaguar ore.