PERTH (miningweekly.com) – Contractor Primero has been awarded a A$973-million contract from gold miner Northern Star Resources for its Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion project.
Under the engineering, procurement and construction (EPC) contract Primero will be responsible for the design, procurement, construction and commissioning of the process plant facilities.
The contract is scheduled for completion by the third quarter of 2026.
Northern Star recently approved a A$1.5-billion investment into the KCGM expansion which would increase and modernise KCGM’s processing capacity from the current 13-million tonnes a year to 27-million tonnes a year, with the operation expected to reach steady-state production in 2029.
The expanded project will produce 900 000 oz/y of gold at steady state, with the current mineral and ore reserves supporting a mine life of more than 20 years, with all-in sustaining costs targeted at A$1 425/oz during steady-state production.