Guizhou Secures Contractor for 2.5 Billion Yuan Mining and Restoration Venture

Deep News
Yesterday

A 12-year mine engineering, procurement, and construction (EPC) project has revealed its latest results in Bijie, Guizhou Province. The kaolin mining, restoration, and deep-processing survey, design, and construction (EPC) project in Shaojiadong, Fangzhu Town, Qixingguan District, Bijie City, carries a total investment of approximately 2.594 billion yuan. The project scope extends beyond basic mine infrastructure, integrating downstream extraction and transportation, ore processing facilities, land rehabilitation, and extensive preliminary approvals into the overall contract, with the full implementation timeline spanning from mine construction through final restoration.

Located in Shaojiadong, Fangzhu Town, Qixingguan District, Bijie City, Guizhou Province, the project is tendered by Guizhou Bijie Pengcheng Mining Co., Ltd., with all construction funds sourced from self-raised capital, reflecting a 100% non-government investment ratio. The mining area covers 3.6745 square kilometers, holding proven refractory clay reserves of 30 million tons, with an annual extraction target of 3 million tons under current plans. The construction scope includes new ore processing facilities, plant buildings, and other mining infrastructure, alongside earthwork stripping, site leveling, kaolin extraction and haulage, and mine restoration activities. The total project investment and contract estimate both stand at approximately 2.59392 billion yuan.

This EPC tender encompasses a broad spectrum of responsibilities, where survey, design, and construction are not merely sequential steps but integrate a comprehensive range of tasks from initial preparation through construction, production, and post-mining restoration. The survey portion requires completion of measurement and geological surveys, preliminary investigation, results review, support scheme design for surrounding structures, and on-site technical assistance and services. The design component primarily covers construction drawings, design technical briefings, resolution of technical issues during construction, and follow-up services, culminating in completion acceptance coordination, with the final design scope determined by the tenderee.

The construction segment represents the most substantial workload, incorporating mining rights certificate renewal, preliminary mine procedures, ore processing facility and plant construction, ore extraction and transport, and restoration of construction areas. Pre-construction tasks include exploration, development and utilization plans, feasibility studies, ore dressing trials, safety facility design, environmental impact assessments, safety production permits, and mine design. On-site works span mine construction, earthwork stripping, site leveling, land acquisition, refractory clay extraction and transport, road and pipeline networks, drainage systems, slag retaining walls, greening, lighting, power facilities, and restoration of farmland. The project timeline extends over 12 years, comprising a 1-year mine construction phase, a 10-year extraction period, and a 1-year restoration phase. This schedule clearly outlines the sequence: first establishing production conditions, then entering the long-term extraction stage, and finally completing necessary restoration work.

Bids from three candidates have now been disclosed. The top-ranked bidder is China Railway 15th Bureau Group Shanghai New Energy Development Co., Ltd., with survey costs reduced by 5%, design costs by 35%, and construction bid pricing reduced by 0.2%. The second-ranked bidder is Yuqian Construction (Henan) Co., Ltd., offering survey reductions of 3.7%, design reductions of 26%, and construction bid reductions of 0.13%. The third-ranked bidder is China Railway 17th Bureau Group Fourth Engineering Co., Ltd., with survey reductions of 4.2%, design reductions of 29%, and construction bid reductions of 0.16%. All three bidders structure their offers with separate reduction percentages for survey, design, and construction, with notable variance in the design segment—the top bidder cutting design costs by 35%, compared to 26% and 29% for the second and third bidders, respectively. Construction reductions are 0.2%, 0.13%, and 0.16% for the three contenders.

The key highlight of this project lies not solely in its 2.5 billion yuan investment scale, but in the extended construction and production timelines. From preliminary mine approvals, infrastructure, and ore processing facilities, through long-term extraction, and culminating in final restoration, the project essentially covers the complete cycle of mine development. Under the current 12-year plan, the engineering tasks that emerge will not be concentrated within one or two years, but will unfold progressively alongside mine construction and ongoing extraction activities.

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