AIM-listed MDM Engineering is to build a new gold plant for mining group African Barrick Gold (ABG), the company announced on Friday.

The mining-focused project management firm said that it has signed an engineering, procurement and construction (EPC) contract for the execution of a 2.4m-tonnes-per-annum gold plant for ABG's Bulyanhulu process plant expansion in Tanzania.

After completing the bankable feasibility study in December 2011 followed by value engineering in March and April 2012, MDM is now to start work on the new 'carbon-in-leach' facility to "process tailings reclaimed historical tailings concurrently with current flotation tailings".

MDM's Executive Director George Bennett said in a statement: "We have been working on the Bulyanhulu project since August 2011 and are delighted to have now signed the formal EPC execution contract.

"The team's comprehensive gold experience coupled with our in-depth working knowledge of Tanzania, will ensure a streamlined project. We look forward to a successful working relationship with African Barrick Gold."

FTSE 250-listed ABG is the largest gold producer in Tanzania and has four operating mines. It is the owner and operator of Bulyanhulu.

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MDM Engineering Group Ltd. (DI) (MDM) share price
African Barrick Gold (ABG) share price