Ann: Commercial Urea Production Contract Awarded, page-3

Leigh Creek Energy Limited (“LCK” or “the Company”) has awarded the Engineering,
Procurement, Construction, Commissioning and Finance (EPCCF) contract for the
1Mtpa urea production plant to leading South Korean engineering and construction
company, DL E&C Co. Ltd.
Highlights
• LCK has awarded the Engineering, Procurement, Construction, Commissioning and Finance (EPCCF)
contract to leading global engineering, procurement and construction contractor, DL E&C Co. Ltd.
• The contract is for development of the full commercial stage of the Leigh Creek Energy Project (LCEP),
consisting of a 1mtpa zero carbon urea production facility in South Australia.
• Letter of support from a major South Korean bank has been issued to provide debt finance for up to 70%
(or approximately AUD 1.5 Billion) of the stage 2 project costs.
Key Terms of the Contract
• DL E&C Co. Ltd, will manage the LCEP Bankable Feasibility Study (BFS) and Front End Engineering & Design
(FEED) stages, ahead of the Final Investment Decision.
• Once Final Investment Decision is achieved and all relevant key engineering data and project execution
documents are finalised with LCK, then DL E&C Co. Ltd, will perform the engineering, procurement
construction and commissioning of the urea production facilities.
• Under the contract the turnkey price of the EPCCF will be approximately 70% (or approximately AUD 1.5
Billion) debt funded, the major portion of which will be funded by South Korean banks but with the
potential for involvement of other multi-national banks. The finance will be provided subject to usual
commercial terms and is stage-gated by a positive FID. The remaining 30% will be funded by a mixture of
debt and equity.
Next Steps
DL E&C Co. Ltd. will make an immediate start on the BFS. The Front End Engineering Design follows rapidly
and leads to the expected Final Investment Decision in late 2022.
www.lcke.com.au Level 11/19 Grenfell St, Adelaide SA 5000
ACN: 107 531 822 PO Box 12 Rundle Mall SA 5000
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LCK Managing Director Phil Staveley commented on the DL E&C Co. Ltd. contract:
“We are not bringing DL E&C Co. Ltd. as a contractor; we have engaged them as a partner for our project.
Having a partner such as DL E&C for the project provides us with confidence in delivering the best outcome
for the project, for the stakeholders and for our supportive shareholders.”
“We are committed to moving forward towards the first integrated Australian Urea Production Project and
this will be the first large scale fertiliser project in the world with zero carbon emissions as we previously
committed.”
“Awarding the Stage 2 construction contract moves the Leigh Creek project another major step closer to
developing our large resource base in South Australia to be a leading supplier of urea to international markets
and the Australian agriculture sector, removing many of the supply risks that currently impact Australia’s
farmers, such as commodity price and exchange rate risks and timing.”
The Board of Leigh Creek Energy Limited authorised this announcement to be given to the ASX.
Further information:
Investors
Tony Lawry
T: +61 412 467 160 | E: [email protected]
Media
Tristan Everett
T: +61 403 789 096 | E: tristan.everett@mark