Canadian underground mining contractor Redpath has ordered US$47 million worth of Sandvik equipment for its new contract with Evolution Mining at the Cowal gold mine in Australia.
Redpath, which secured a five-year contract at Cowal last year, expects to start full-scale development and production from July. Delivery of the new Sandvik underground trucks, loaders and drill rigs is scheduled to begin mid-year and continue into 2027.
Redpath is taking over as underground mining contractor at Cowal from Barminco, part of the ASX-listed Perenti, which signed on as Cowal underground development and mining contractor in 2022. Its four-year deal was worth A$520 million.
Sandvik said it was also supplying digital solutions, rock tools and consumables, plus equipment parts and service, to Redpath.
Cowal is Evolution’s cornerstone operation, aiming for FY2026 output of 305,000-330,000oz at AISC of US$1300-1430/oz after producing a record 330,008oz in FY25.
The underground operation, where mining started in 2023, is expected to supply about one-third of the ore into the circa-9.8 million tonnes per annum Cowal gold plant in FY26 and account for about 50% of the ounces produced.
Evolution is investing in extension of the Cowal openpit operation after spending about US$250 million to establish the underground mine and take the life-of-mine plan out to 2040.
Cowal poured its first gold back in 2006 and was acquired by Evolution in 2015.
“When we acquired Cowal in 2015 it was scheduled to finish mining in 2020 and process low grade stockpiles until closing in 2024,” Evolution execution chair Jake Klein told last year’s Evolution annual shareholder meeting.
“But we could see the potential of its world-class orebody.
“Under our ownership, supported and enabled by appropriate regulatory approvals from the New South Wales and federal government, Cowal’s mine life has been extended time and time again. Over the last 10 years the operation produced 2.6 million ounces of gold and paid over $200 million in royalties.
“Last year alone we spent more than $200 million regionally.”
