Under the new agreement Hyundai-AMEC will produce the project execution strategy, project schedule and final price for the main engineering, procurement and construction contract at Hillside.

The deal follows a non-binding memorandum of understanding signed with Arccon and China Nonferrous Metal Industry’s Foreign Engineering and Construction arm for similar works in June 2013.

While Arccon’s parent, Allmine, slipped into administration last year, the competition with Hyundai-AMEC for Hillside’s engineering work remains.

Rex managing director Mark Parry said the new agreement with Hyundai-AMEC was an important step toward securing further development and funding for Hillside.

The company is aiming to start construction soon and move into copper production by 2016.

“We have a very busy period ahead of us with a number of project elements to be brought together and crystallised,” he said.

“We continue to work toward finalising the bankable feasibility study, we are working closely with the state government to secure regulatory approvals and we have a range of ongoing discussions to secure debt and equity funding, including potential offtake partners and export credit agencies.”

Hyundai and AMEC said they had been working on the Hillside project for a long time and were pleased to see their efforts recognised.

“By securing this early contractor involvement, Hyundai-AMEC is well positioned to secure the main engineering, procurement, and construction works in 2014,” it said.

Hillside is estimated to be an $A850 million project and Rex is looking to secure part of the operation’s funding from financial institutions in Korea and China.

Rex shares were up 4.5% to 57.5c this morning.