Tag Archives: Pantoro

Pantoro enlists GR Engineering to build Norseman gold processing plant

Pantoro Ltd has signed a Letter of Intent with GR Engineering Services that is likely to see the ASX-listed contractor take on the engineering, procurement and construction works for the processing facility at the Norseman gold project in Western Australia.

The gold company, which owns 50% of the asset, said detailed engineering works will commence immediately and orders will be placed for long lead items including the 3.3 MW ball mill. Contract documentation is being finalised and is expected to be executed before the end of February.

The contract value is around A$57 million ($44 million) and will be awarded as a guaranteed maximum price agreement, Pantoro noted. This value is inclusive of the crushing circuit associated with the plant.

The DFS announced in October 2020 contemplated a build-own-operate-transfer (BOOT) arrangement for the crusher at Norseman with the transfer planned in year three.

This study also outlined average production of 108,000 oz/y over a seven-year phase one life, peaking at 119,000 oz in year two of production. It also provided for a processing plant capacity of 1 Mt/y with flexibility to expand to 1.5 Mt/y.

Separately, demolition works for the existing plant on site have been awarded with commencement of site works planned for mid-February.

Pantoro Managing Director, Paul Cmrlec, said: “We are pleased that GR Engineering Services will undertake work with their proven track record in new processing plant builds in recent years. GR Engineering has been the dominant supplier of new processing plant builds in Western Australia in recent times, and we look forward to drawing on their experience in construction of the plant at Norseman.”

Macmahon Holdings books open pit coal and underground gold work

Macmahon Holdings has added another A$270 million ($201 million) of work to its books with the formal award of preferred contractor status at the Foxleigh coal project and a two-year contract extension for its GBF business at Pantoto Ltd’s gold operation.

After being selected as preferred contractor in October, Macmahon’s work at the Foxleigh joint venture operation (pictured) in Queensland, Australia, will commence on March 1. The contractor will provide equipment hire and maintenance services at the open pit, truck and excavator operation in the Bowen Basin, with the contract expected to generate circa-A$250 million of revenue over a five-year term.

The work with Pantoro will see GBF take on additional work at the Wagtail and Nicolsons underground gold operations near Halls Creek in Western Australia. This contract will extend GBF’s tenure at the project to October 2023, and is worth around A$20 million, it said.

Macmahon CEO and Managing Director, Michael Finnegan, said: “The formal award of the Foxleigh project adds A$250 million to our order book and further diversifies and expands our east coast presence. We are now looking forward to building on the relationship with our new client.

“We are also delighted to continue the strong relationship that GBF has built over many years with Pantoro. The contract extension is another important step in our strategy to further expand in the underground market and we remain very well placed to continue growing our underground business.”