May 14, 2009
TSX:BAJ
PRESS
RELEASE
BAJA
MINING SELECTS ICA FLUOR AS EPCM CONTRACTOR
&
RESTARTS BOLEO ENGINEERING
VANCOUVER,
B.C. Baja Mining Corp. today
announced that it has signed a letter of intent with ICA Fluor to perform the
engineering, procurement and construction management (EPCM) for Baja Mining’s
Boleo copper-cobalt-zinc-manganese mining project
located near Santa Rosalia, Baja California Sur,
Mexico.
The
project will be performed in two phases. MMB has released ICA Fluor to
work on Phase I, which consists of the development of an open book capital cost
estimate and project construction schedule. The cost estimate will reflect current market conditions and be supported by the work performed to date
(about 30% of engineering has been completed). The Phase I capital cost estimate
will be subject to independent third party review, and is expected to be
completed by the end of the third quarter of 2009.
Phase II
will include the execution of engineering,
procurement and construction management necessary to bring the project into
production. The parties are currently negotiating an interim Memorandum
of Understanding which will include the general terms and conditions of a
reimbursable EPCM contract. Phase II will commence upon completion of
construction financing.
The
integrated Baja-ICA Fluor team will prove invaluable to Boleo’s
progress, says Baja President John Greenslade. With
the combined knowledge and efforts of this team, the project will continue to
be developed in a responsible, sustainable and economic manner ensuring that
the best interests of all stakeholders and the community of Santa Rosalia continue to be served.
About
ICA Fluor
ICA Fluor
is the leading industrial engineering and construction company in Mexico. The
company specializes in engineering, procurement, maintenance and construction
of industrial plants for the gas, oil, chemical, petrochemical, automotive,
power, manufacturing, mining and telecommunication sectors. ICA Fluor is a joint venture of Empresas
ICA and Fluor Corporation.
About Baja Mining
Baja is a
Vancouver-based publicly traded company (TSX:BAJ) with a 70% interest in the Boleo copper-cobalt-zinc-manganese project located near
Santa Rosalia, Baja California Sur, Mexico. A Korean
syndicate holds the remaining 30%. Baja is the project operator. The target
date for commissioning Boleo is 2011. A 2007
definitive feasibility study projected an average annual production for the
first four years of 56,000 tonnes of copper cathode,
1,500 tonnes of cobalt cathode and 20,000 tonnes of zinc sulphate. The
project has proven and probable reserves that support a mine life of more than
25 years. Anticipated cash costs in the first
five years are US$0.27 per pound of copper, net of by-product credits for
cobalt and zinc and with no credit for manganese.
ON
BEHALF OF THE BOARD OF DIRECTORS OF
BAJA
MINING CORP.
John
W. Greenslade
JOHN
W. GREENSLADE, PRESIDENT
For
further information please contact John Greenslade,
President, at (604) 685-2323