My background is in large scale commercial construction and in that industry, which is one of the simplest forms of construction that there is, for a similar size project I would expect consultant fees to add up to approximately 15%. Add in the additional complexity of this plant, the extent of piping, electrical and instrumentation, the need for specific procurement teams, the suspension of works and the change in engineering teams, and I am surprised that Lynas has been able to keep the EPCM fees down to 25%. There has obviously been a lot of effort gone in to keep control of costs.
As Flyer69 says it is a great effort to still be within available cash.
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Ann: Lynas Rare Earths Project Update , page-14
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