Mungari Plant Expansion Awarded to GR Engineering

Mungari Plant Expansion Awarded to GR Engineering

Evolution Mining Ltd. awarded a contract to GR Engineering Services Ltd. to complete the plant expansion works at its Mungari mine, located 20 km west of Kalgoorlie, Western Australia. These works are expected to total A$155 million ($98.8 million) and are part of the previously announced A$250 million ($159.2 million) commitment to increase the site’s processing capacity from 2 million metric tons per year (mt/y) to 4.2 million mt/y.

Planning is well progressed, including initial engineering design and procurement work. Site activities are expected to commence 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 Q1 2026.

Targeting gold production of 200,000 oz/y for the life of the mine, Evolution said this project is expected to reduce Mungari’s all-in sustaining cost (AISC) by 18% to A$1,750/oz ($1,115/oz) and extend the mine life to 2038.

“The award of this contract is a major milestone for the Mungari Future Growth Project,” said Lawrie Conway, managing director and CEO for Evolution Mining. “It secures the critical processing plant infrastructure within our budgeted costs, locking in more than 60% of the project costs, and secures a delivery time within the approved project schedule.”

Mungari mined above plan during FY23, producing 135,592 oz at an average AISC of A$2,083/oz ($1,327/oz). FY23 guidance was 127,500 oz with an average AISC of A$2,040/oz (+/- 5%). 19.9%.

As featured in Womp 2023 Vol 11 - www.womp-int.com