South Korea’s midsized builder DL E&C Co. has entered a binding heads of agreement with Australia’s Leigh Creek Energy Ltd. to conduct pre-feasibility study and front-end engineering and design (FEED) work for a urea project in South Australia.

As a preferred bidder, DL E&C plans to iron out details for the agreement by the end of next month to become an engineering, procurement, construction and commissioning contractor, the company said Tuesday.

Upon winning the status, the builder will be able to start construction of a urea plant with an annual capacity of 100 tons in Leigh Creek Coalfield, an old mine located 550 km north of Adelaide, the capital city of the state of South Australia.

DL E&C expects to take home an estimated $30 million from the project.

DL E&C aims to finish the pre-feasibility study and the FEED in a year.

The company has been recognized its technological edge after successfully finishing the ammonia production plant for Saudi Arabia’s state-run mineral company Madden.

DL E&C shares closed Tuesday 0.37 percent higher at 134,000 won ($119.37).

By Pulse

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