Primero focus, page-75

DB I disagree with your “it does not bode well for Primero” comment.
And note no mention of Primero was made in today’s ‘unexpected delay’ news over at Hazer.

Primero is the procurer for Hazer as part of its’ EPC contract last July [see it]
Today Hazer wrote there was an issue in China with the reactor build.
But problems to do with this had already been identified earlier in the year so the delay might relate to these issues not being addressed as required rather than faulty specifications;

Last March Hazer advised there were already issues with the reactor build (whilst not saying it was being built in China)
…With the placement of major packages order for the project nearing completion, we advise that the expected cost of the project has seen some increase, with our expected final cost now estimated to be between 5 – 10% above our initial indicated capital cost estimate of $17 million.
The increase in cost is due to a number of factors, including; an increased budget for the reactor and furnace packages as the revised design has required more complex metallurgy to be able to safely deal with the required process conditions, increased engineering costs to complete the detailed design due to the complexity of issues required to be resolved to deliver this complex, first-of-its-kind technical project, increased costs for some primary equipment items between initial budget prices and final pricing reflecting improved activity in global markets as economies begin recovery from the covid-related slowdown in 2020 and increased labour and equipment costs driven by the very strong activity levels in the West Australian economy.
Together, these factors have raised our budget forecast with an expected final range of $17.9 - $18.7 million.

With the commencement of civil site works this month and the receipt of first equipment packages also occurring during this quarter, we continue to plan site installation and construction activities to commence from mid-2021, and we maintain our target completion date of 4Q 2021.
With the revision to the reactor and furnace package designs highlighted previously, we are now targeting project commissioning to commence in November 2021, approximately 1 month later than the previously indicated guidance of October 2021. [link]


So quite possibly there is no blame due to Primero but problems which Primero experts had identified months ago were not properly attended to?

Meanwhile work goes on..
… “We will continue with ……planned activities to allow us to undertake cold commissioning and testing of the plant, including catalyst handling, fluidisation and control systems, prior to the delivery and installation of the reactor.”..[link]

Cheers