Allied Gold Corp is enlisting the help of Mota-Engil to advance its Kurmuk project, in Ethiopia, with the Portugal-based engineering and construction company set to carry out the mining contract.

The award will advance earthworks at an early stage, allow sufficient time for the importation and mobilisation of equipment well ahead of the timeframe when mining will begin, and also allow for the early establishment of infrastructure, support and training of personnel, the company says.

Year-to-September 30, Allied Gold $53.9 million has been invested in the project, with Allied Gold saying it expects first production in mid-2026.

The Kurmuk project’s development plan involves a total capital investment of approximately $500 million. Anticipated production is expected to average 290,000 oz/y over the first five years, sustaining over 240,000 oz/y over a 10-year mine life at an all-in sustaining cost of $950/oz.

The awarded mining contract to Mota-Engil, which provided competitive rates consistent with the feasibility study, along with the previously announced Power Purchase Agreement with Ethiopian Electric Power, further supports the project’s economics by securing an experienced and reputable mining contractor and reliable, affordable hydroelectric power, Allied Gold says.

Grid connection is expected ahead of the first production in mid-2026.

“With Kurmuk fully permitted, licenced and progressing on plan and on budget, the company remains well-positioned to achieve first production in mid-2026, delivering long-term value to stakeholders,” it said.