Tag Archives: GR Engineering Services

GR Engineering receives LoI for EPC process plant build at K92’s Kainantu gold mine

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GR Engineering Services has received a Letter of Intent from K92 Mining Ltd, a subsidiary of TSX-listed K92 Mining Inc, for the engineering, procurement and construction (EPC) works associated with a 1.2 Mt/y process plant at the Kainantu gold mine in Papua New Guinea.

K92 Mining owns and operates Kainantu, a producing gold mine that has existing infrastructure at site. The EPC works are being performed as part of K92 Mining’s Stage 3 Expansion plans.

K92 Mining has successfully executed multiple expansions at the Kainantu Gold Mine, after restarting operations at the site in 2016.

In addition to the award of the contract, all process plant long-lead item contracts have already been awarded on a fixed price (excluding freight), to CITIC HIC Australia Pty Ltd for the SAG and ball mills, Jord International Pty Ltd for the filter press and Metso for the tank flotation cells, flash flotation cells and high-rate thickeners, K92 says.

The contract sum for the EPC contract is $81 million, with GR Engineering having commenced engineering works on an agreed scope and cost basis. The contract is expected to be finalised by the end of August 2023.

Tony Patrizi, Managing Director, said: “GR Engineering is a leading gold EPC contractor and has previous experience on PNG projects through our Brisbane office. We are looking forward to assisting K92 Mining achieve their expansion plans and to delivering a safe outcome for the project.”

K92 says commissioning of the 1.2 Mt/y Stage 3 Expansion process plant is targeting the end of the March quarter of 2025.

GR Engineering books A$210 million EPC beneficiation plant order for Yangibana rare earths project

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GR Engineering Services says it has entered into a binding term sheet with Yangibana Pty Ltd, a wholly-owned subsidiary of Hastings Technology Metals Limited, for the engineering, procurement and construction (EPC) of the beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

The project is approximately 250 km north east of Carnarvon.

Hastings said the plant will have a feed capacity of 1 Mt/y and a rare earth concentrate output capacity of 35,000 t/y of rare earth mineral concentrate at a grade of 27% total rare earth oxides.

GR Engineering and Hastings have agreed the material terms of the EPC contract in the binding term sheet. The EPC contract for the works will be finalised shortly and GR Engineering will commence early works. If the EPC contract is entered into, it is expected that the contract sum, including provisional sum, will be A$210 million ($140 million).

Tony Patrizi, Managing Director of GR Engineering, said: “GR Engineering is pleased to have received the binding term sheet for this world-class rare earths project in the Gascoyne region of Western Australia. It will be exciting to work on this project as it is focused on globally critical minerals that are used as key components for electric vehicles and wind turbines.”

GR Engineering to design and construct OZ Minerals’ West Musgrave process plant

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GR Engineering Services says it has entered into two contracts with OZ Minerals Musgrave Operations Pty Ltd, a wholly owned subsidiary of OZ Minerals Limited, for the design and construction works of the West Musgrave mineral processing plant in Western Australia.

GR Engineering has been engaged by the company to provide the following services for the West Musgrave project:

  • Engineering design, drafting, project management and commissioning; and
  • Structural, mechanical, piping, electrical and instrumentation construction works.

GR Engineering’s wholly owned subsidiary, Mipac Pty Ltd, will also be engaged within the GR Engineering scope of work to provide specialist electrical and instrumentation services.

The estimated revenue from the delivery of these contracts will be A$312 million ($211 million) over a two year period.

Tony Patrizi, Managing Director of GR Engineering, said: “We are pleased to have been engaged by OZ Minerals to play a key role in the delivery of the world- class West Musgrave project. This is an important project for GR Engineering as we have worked with OZ Minerals over many years on projects within the OZ Minerals group, including the West Musgrave project, and see this award as a strong endorsement of our proven delivery capabilities.”

Debbie Morrow, Projects Executive for OZ Minerals, added: “We’re delighted to be working with GR Engineering on the design and construction of the minerals processing plant for the West Musgrave project, which is set to be one of the largest, lowest cost, lowest emissions copper-nickel projects.”

The West Musgrave project feasibility study the OZ Minerals Board signed off last year details a 13.5 Mt/y operation with average production of circa-28,000 t/y of nickel and circa-35,000 t/y of copper over a 24-year operating life.

GR Engineering locks in 1 Mt/y processing plant build for Bellevue Gold

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GR Engineering Services Limited, following a preliminary works agreement signed in May, has entered into a contract with Golden Spur Resources Pty Ltd, a wholly-owned subsidiary of Bellevue Gold Limited for the engineering, procurement and construction (EPC) works in relation to the 1 Mt/y gold processing plant and associated infrastructure for the Bellevue gold project in Western Australia.

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.

The contract sum for the EPC contract is A$87.8 million ($60.7 million).

Bellevue Gold said the award of the contract was particularly important because it further insulates Bellevue against rising costs.

“The EPC contract is the last of the large capital expenditure items on the pathway to production, meaning 90% of the project’s pre-production expenditure is locked in either via contracts or tenders (79% under contract and 11% under advanced tender),” it said.

As part of the preliminary works agreement, GR Engineering had already commenced work on the project. This involved design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into the now-signed EPC contract.

Geoff Jones, GR Engineering Managing Director, said: “GR Engineering is pleased to continue its involvement on this exciting gold project. Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Bellevue, including by reference to its strong track record of successful project outcomes in the Western Australian gold sector.”

Bellevue said the design criteria incorporates sufficient headroom to support an increase in throughput to 1.2 Mt/y with no additional capital required across the entire plant.

“Further expansions beyond 1.2 Mt per annum can be achieved for a low level of additional capital,” it added.

Bellevue Gold is looking to become one of lowest emitting gold mines in Australia, with a forecasted greenhouse gas intensity of 0.202 t CO2e/oz, with planned integration of renewable energy.

The design for the processing plant also follows this philosophy, with the design of the crushing circuit optimised to maximise renewable energy usage by incorporating higher throughput rates, enabling its use to rise and fall in line the availability of renewable energy while not restricting overall throughput, the company said.

“By optimising the power demand curve to better align with key daytime and night-time energy peaks and troughs in the generation of power from renewable energy sources, it will create the optionality for the crushing circuit to maximise crushing in peak renewable energy generation periods,” Bellevue said. “This will have the potential to offset more than 1 MW in demand on thermal power generation.”

GR Engineering to deliver feasibility study on Ta Khoa nickel project

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Blackstone Minerals Ltd has appointed GR Engineering Services Ltd (GRES) as the primary consultant in the delivery of the Upstream Definitive Feasibility Study (DFS) for its Ta Khoa nickel project (TKNP), in Vietnam.

As the primary consultant, GRES will focus on the delivery of major workstreams including process infrastructure, metallurgical test work and co-disposal tailings storage. GRES will also coordinate, collaborate with and collate information from other key workstreams including mining studies, Blackstone said.

Blackstone says GRES has a proven track record and relevant experience to deliver the TKNP DFS, having completed a DFS for OZ Minerals on its West Musgrave nickel project and completed engineering, procurement and construction work on the Cosmos Expansion project (Western Areas Ltd), the Nova Nickel project (now IGO Ltd), the Cosmic Boy nickel project (Western Areas) and the Sinclair nickel project (now Northern Star Resources Ltd).

Further, GRES provides full life-cycle engineering services from feasibility studies through to delivery of projects under both EPC and engineering, procurement and construction management models, Blackstone said.

Scott Williamson, Blackstone’s Managing Director, said: “GRES adds to an already impressive team of engineers that are contributing to the design and development of the Ta Khoa Project.

“Blackstone continues to de-risk its development strategy both from a technical and funding perspective, and looks forward to updating the market as we take key steps towards a final investment decision.”

The TKNP is 160 km west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian standards, which is currently being used to process nickel ore delivered by the underground bulk sample program, the company said. The Ban Phuc nickel mine successfully operated as a mechanised underground nickel mine from 2013 to 2016.

In February 2022, Blackstone completed a prefeasibility study for the TKNP, and presented this on an integrated basis with the proposed Ta Khoa Refinery (TKR) development. The TKR is being designed to have a refining capacity of 400,000 t/y, with feedstock provided from a combination of concentrate from the TKNP and third-party feed sources.

GR Engineering to refurb and upgrade Cosmos nickel concentrator

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GR Engineering Services Ltd is set to carry out an upgrade of the existing nickel concentrator at the Cosmos Nickel Operations, owned by Western Areas Ltd, after signing an engineering, procurement and construction (EPC) contract with one of the miner’s subsidiaries.

The project is 30 km north of Leinster in Western Australia.

Western Areas says it has plans to refurbish and expand the concentrator to achieve 900,000 t/y throughput. In its most recent quarterly report, it said long lead items for the project had been identified with ordering taking place in the December quarter. Most of the plant refurbishment and upgrade is due to commence in the March quarter of 2022.

The contract sum is A$48 million ($36 million) and GR Engineering has commenced work immediately, the contractor said.

Geoff Jones, Managing Director, said: “GR Engineering has a long history of working with the Western Areas management team and have a strong track record of delivering projects for Western Areas on time and on budget. GR Engineering is excited to work with Western Areas on another important project and we are looking forward to delivering safe and successful outcomes for the project.”

GR Engineering wins Mt Ida EPC contract from Aurenne Alt Resources

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GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Aurenne Alt Resources Pty Ltd in relation to the Mt Ida gold project in Western Australia.

Mt Ida, which Aurenne inherited with the acquisition of Alt Resources last year, is in the eastern goldfields of the state.

GR Engineering said the contract sum is approximately A$73 million ($54 million) and work is expected to start immediately.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have been awarded the EPC contract by Aurenne and we look forward to working collaboratively with the Aurenne team. This project further reinforces GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Alt Resources previously outlined the need for a 750,000 t/y processing facility at Mt Ida in a 2020 feasibility study prior to being acquired by Aurenne.

Bardoc and GR Engineering get to work on optimising gold processing plant plan

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Bardoc Gold has signed a letter of intent (LoI) with GR Engineering Services that confirms its status as preferred tenderer for the engineering, procurement and construction (EPC) contract for the processing facility and associated infrastructure at the Bardoc gold project near Kalgoorlie in Western Australia.

The appointment of GRES as preferred tenderer represents another significant step for Bardoc as work continues to accelerate on key project optimisation strategies aimed at streamlining the mining and production schedule, growing the production rate and improving project economics and returns, Bardoc said.

It follows Bardoc recently initiating a Cash-flow Optimisation Study, which is aimed at increasing the forecast production rate, margins and cashflow of the project. The definitive feasibility study, published earlier in the year, outlined a 2.1 Mt/y project with average annual gold sales of 135,760 oz over 8.2 years of mill production.

The LoI contemplates Bardoc working closely with GRES to complete the optimisation work currently underway as the company moves towards project financing and a Final Investment Decision before the end of the year.

Further updates on the optimisation work will be provided in the coming weeks, with results expected to be provided to the market by the end of August, Bardoc said.

GR Engineering has recently completed the construction of several comparable processing plants in Western Australia, according to Bardoc.

Progressing from the current LoI to a formal EPC contract will be subject to various conditions, including board approvals, project financing, statutory approvals and final contractual pricing and terms.

Bardoc Gold CEO, Robert Ryan, said: “Bardoc is moving rapidly towards the development of a new high-quality, high-margin gold project near Kalgoorlie. The competitive EPC tender process has drawn a number of quality submissions, reflecting the rapid progression of the Bardoc Gold Project and the high-quality work completed as part of the definitive feasibility study.

“The appointment of GR Engineering marks another key step in the development of the project and establishes an important relationship with a leading design and construction group. We look forward to working with the GRES team over the coming weeks and months.”

GR Engineering to help double processing capacity at NSR’s Thunderbox

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GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Northern Star Resources in relation to the Thunderbox 6 Mt/y expansion project in Western Australia.

Located 45 km south of Leinster, the Thunderbox operations currently have a 3 Mt/y processing capacity. The asset was owned by Saracen Mineral Holdings prior to a merger with Northern Star.

The works will involve the design, engineering, procurement, construction and commissioning of the project, with the contract sum amounting to A$101 million ($74.3 million) and work is expected to start immediately.

GR Engineering has carried out several projects on the Thunderbox operations, including EPC work on the Thunderbox paste plant work, which has seen a new 150 cu.m paste backfill plant built.

Commenting on the recent award, Geoff Jones, GR Engineering Managing Director, said: “GR Engineering is excited to continue working with Northern Star, one of the world’s leading gold producers, to safely deliver the Thunderbox Expansion project. We have worked with the Northern Star team over many years and see this award as a strong endorsement of our proven EPC delivery capability.”

On award of Northern Star’s largest infrastructure project to date, Northern Star’s General Manager Processing, Simon Tyrrell, said: “The Thunderbox expansion increases the operation’s hard-rock processing capacity to 6 Mt/y from the current 3 Mt/y, and decreases processing costs as outlined in the 2021 Investor Day Presentation. Northern Star is pleased to be working with GR Engineering again, a local company with vast project delivery experience in the Australian mining industry.”

In this same presentation, the company said the processing capacity boost would involve the addition of a new 18 MW mill and classification circuit; new leach tanks, elution and gold room upgrades; and new tailing thickener and tailings pumping. The plant would be designed for 100% fresh ore, NSR said.

GR Engineering to tackle surface infrastructure for Tanami Expansion 2

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GR Engineering Services Ltd has executed a subcontractor agreement with RUC Cementation Mining Contractors Pty Ltd in relation to work on Newmont’s Tanami gold mine in the Northern Territory of Australia.

RUC has been engaged by Newmont under a head contract to complete certain construction works for the Tanami Expansion 2 project. Included within this is shaft lining, equipment and headframe construction.

The scope of work for which GR Engineering is responsible comprises the construction and commissioning of the temporary and permanent works associated with the surface infrastructure.

Based on the current budget for the scope of work, it is anticipated that revenue from the subcontractor agreement will be approximately A$68 million ($51 million), GR Engineering said. Work is expected to be completed by April 2023.

Back in November, the two companies signed a “teaming agreement” related to the project.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have executed this first subcontractor agreement with RUC and we look forward to working with RUC to deliver safe and successful outcomes for Newmont and on other future projects. GR Engineering continues to build its pipeline of work for financial year 2022 and financial year 2023.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.