Heron Disputes $49.9M Woodlawn Costs Claim From Sedgman



Heron Resources has received a claim from CIMIC Group subsidiary Sedgman for $49.9 million in additional costs for works at the Woodlawn zinc-copper project in New South Wales.

Heron has debated the claim, which puts costs over the guaranteed maximum price of Sedgman’s $109 million engineering, procurement and construction (EPC) contract at the site.

Heron awarded Sedgman the 18-month EPC contract to develop a 1.5 million tonnes per year processing plant (now 95 per cent complete) for zinc, copper and lead production from underground mining and tailings in May 2017.