Liontown awards $71m contract to GR Engineering Services

Liontown Resources Limited (ASX: LTR) has awarded an EPC (engineering, procurement and construction) contract worth about $71m to GR Engineering Services Limited (ASX: GNG).

The contract is for the delivery and commissioning of its paste plant facility for underground mining operations at Kathleen Valley.

The paste plant will include two trains capable of producing up to 160m³/hr of paste and has been designed to accommodate future expansion of mining operations to 4mtpa.

Liontown managing director and chief executive Tony Ottaviano says the paste plant will further derisk the planned underground production rates at Kathleen Valley.

“GRES has designed and constructed multiple paste plant facilities throughout WA  and the GRES team has mobilised and commenced initial works at Kathleen Valley,” he said.

GR Engineering Services managing director Tony Patrizi commented on this.

“We are pleased to have been engaged by Liontown to play an important role in the delivery of the world class Kathleen Valley lithium project,” he said.

“We see this contract award as a strong endorsement of GR Engineering’s proven process design record and EPC delivery capability.

“We look forward to continue working with the Liontown team on the successful and safe delivery of this project.”

Delivery of cemented paste fill will help maximise recovery of the underground orebody and planned production rates, as well as reduce the size of the surface tailings dam.

The paste plant has also been designed to facilitate dry stacking and water recovery, thereby increasing the amount of recycled water the site utilises.

The EPC forms part of planned and budgeted next stage of growth capital costs post first production and funding is contemplated under the recently announced $550m financing facility.

GRES have progressed the design, procurement and initial site works under an early works agreement to ensure timely delivery of the paste plant.