Primero Group has been awarded a $973m engineering, procurement and construction (EPC) contract with Northern Star Resources (ASX:NST) for its KCGM growth project in WA.
The execution of the contract follows and extensive program of work to define the scope, cost and schedule of the project.
Under the EPC contract, Primero will be responsible for the design, procurement, construction and commissioning of the process plant.
In January 2022, Primero participated in a competitive early contractor involvement (ECI) program and worked with Northern Star to develop a technically superior design that will bring operating benefits to the Fimiston processing plant.
Following the ECI program, Primero was engaged to undertake further value engineering and scope development.
Primero managing director Michael Gollschewski said the ECI program was one of the most thorough it has participated in.
“The execution of the KCGM growth project is the culmination of an 18-month journey with Northern Star,” he said.
“The work conducted to date to develop the capital cost, design, execution strategy and schedule for the project has been one of the most rigorous ECI programs we have participated in.
“The effort of the combined teams to define this key project has provided a solid foundation for a safe, efficient and successful delivery.”
Work under the contract is expected to be completed by Q3 2026.
