Evolution Mining awards plant expansion works contract for Mungari

Evolution Mining (ASX:EVN) has awarded a contract to GR Engineering Services (ASX:GNG) for plant expansion works at the Mungari project in WA.

Work is expected to total $155m and falls within the budget and schedule of Evolution’s commitment to invest $250m to increase Mungari’s processing capacity from 2mtpa to 4.2mtpa.

Evolution managing director and chief executive Lawrie Conway says the contract award is a major milestone for the company.  

“It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures a delivery time within the approved project schedule,” he said.

“Completion of the plant expansion will enable Mungari to significantly increase gold production while reducing all-in sustaining cost by 18% to $1740/oz and extending the site’s mine life to 2038.”

Planning is progressing well with initial engineering design and procurement works underway. Site work is expected to begin in mid-January 2024.

The project has an estimated 30-month construction period, including long-lead items and approvals, with commissioning expected by the end of the March 2026 quarter.

GR Engineering managing director Tony Patrizi says the company is pleased to have been selected.

“We are extremely pleased that Evolution Mining, one of the world’s leading tier one gold producers, has selected GR Engineering to deliver the future growth project at Mungari,” he said.

“We see this contract award as a strong endorsement of GR Engineering’s proven design record and engineering, procurement and construction delivery capability.”