MACA secures EPC contract for King of the Hills gold project in WA

MACA Interquip – a subsidiary of MACA Limited – has received a Notice of Award for an engineering, procurement and construction (EPC) contract from Red 5 Limited for works at what will be Australia’s next major gold mine, the King of the Hills (KOTH) Gold Mine. 

The $129 million EPC, bulk earthworks and supply contract will get MACA Interquip to undertake the delivery of a processing facility, equipping of the bore fields as well as delivery of high voltage power distribution, workshop, warehouse and bulk earthworks. 

“The King of the Hills gold project is a significant win for the MACA Interquip business. It will support the 2021 calendar year and grow MACA Interquip in-line with our long-term strategy. We look forward to working with the Red 5 team to develop this project,” MACA CEO Mike Sutton said. 

Artist impression of the processing plant (source: Red 5 Limited)

This contract will also include the purchase of a 6Mtpa gyratory crusher and a 4Mtpa SAG mill, both of which are currently being transported to site ahead of the planned delivery next year. 

With the Notice of Award given to MACA Interquip, the company will be able to commence design and procurement activities for the process plant and the mobilisation of earthmoving equipment to the project site. 

“Our decision to award these key contracts and make commitments to significant long-lead items prior to completing project debt funding reflects our confidence in the robustness of the King of the Hils Project. 

“Importantly, the commitments made to date are below budget for this stage of the KOTH Project, and should give our stakeholders confidence that we are well on track to progress the development of this major project, with production planned to start in June Quarter 2022,” Red 5 Managing Director Mark Williams said. 

The current total funding commitment for the development of the King of the Hills project sits at $143 million, which is under the estimated capital budget of $155 million. 

To date, the commitments covered by the budget include: 

• Purchase of a 240-bed camp accommodation, water and wastewater treatment plants and central facilities 
• A design and construction contract for a 450-person village 
• A 6Mtpa gyratory crusher and 4Mtpa SAG mill 
• An Early Works Agreement with APA Group for the gas pipeline lateral 
• An EPC contract for the process facility and bulk earthworks 

Construction on the accommodation village commenced in October and it is on track to completion in February 2021. On the other hand, bulk earthworks for the processing plant are scheduled to begin on 1 December 2020, subject to the acquisition of the final permit for development. 

KOTH village currently under construction (source: Red 5 Limited)

In addition, Red 5 Limited is currently calling for tenders for both the open pit and underground mining contracts as well as the independent power producer contract and supply of gas. These contracts are due to be finalised over the coming months. 

The King of the Hills Gold Mine is wholly-owned by Red 5 Limited and it is located about 80 kilometres south of the company’s Darlot Gold Mine and approximately 28 kilometres north of the town of Leonora in Western Australia’s Eastern Goldfields. 

Source: MACA Limited; Red 5 Limited (1, 2); Australian Mining