EPC contract for Mungari process plant expansion awarded to GRES

Evolution Mining has awarded GR Engineering Services (GRES) a $155 million engineering, procurement and construction (EPC) contract for works related to the expansion of the Mungari process plant in Western Australia. 

The Mungari Growth Project – Process Plant is part of the previously announced $250 million investment towards increasing the mine’s processing capacity from 2Mtpa to 4.2Mtpa. 

The scope of works of the Mungari process plant expansion includes required changes to process plant buildings as well as associated infrastructure. 

“We are extremely pleased that Evolution Mining, one of the world’s leading tier one gold producers, has selected GR Engineering ti deliver the Future Growth Project at Mungari. GR Engineering has a long track record of successful project delivery in the mineral processing sector. We see this contract award as a strong endorsement of GR Engineering’s proven process design record and EPC delivery capability,” GR Engineering Managing Director Tony Patrizi said. 

Initial engineering and procurement activities are already underway and major works on site are due to begin in mid-January 2024. 

Project construction is estimated to take up to 30 months to complete, including long-lead items and approvals. Commissioning of the expanded Mungari process plant is expected by the end of March 2026 quarter. 

The Mungari operations is located about 600 kilometres east of Perth and 20 kilometres west of Kalgoorlie. It sits on the lands of the Marlinyu Ghoorlie People and other knowledge holders. 

“We are delighted to be partnering with GR Engineering on such a key project for Evolution. Completion of the plant expansion will enable Mungari to significantly increase gold production while reducing All-In Sustaining Cost by 18% to A$1,750 per ounce and extending the site’s mine life to 2038. 

“The award of this contract is a major milestone for the Mungari Future Growth Project. It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures delivery time within the approved project schedule. The Feasibility Study established a sound investment case with an internal rate of return for the project between 19% and 28%, at a conservative A$2,400 per ounce and spot price of A$2,965 per ounce respectively,” Evolution Mining Managing Director and Chief Executive Officer Lawrie Conway said. 

Source: GR Engineering Services Limited; Evolution Mining Limited (1, 2)