ASX-listed GR Engineering Services expects to finalise a US$81 million engineering, procurement and construction (EPC) contract to build K92 Mining’s new 1.2 million tonnes per annum Kainantu gold processing plant in Papua New Guinea next month.
K92 said in September last year its stage-three development definitive feasibility study for Kainantu showed robust returns on a planned US$177 million expansion to lift annual production beyond 300,000 ounces gold-equivalent by 2026.
The company said this week its award of the EPC contract, after earlier placing orders for most of the required equipment for the 1.2Mtpa plant, further mitigated potential project cost increases with about 94% of the forecast capital cost now fixed.
“GR Engineering has commenced engineering works on an agreed scope and cost basis,” the Australian company said.
“The EPC contract is expected to be finalised by the end of August 2023.”