Evolution Mining’s ambitious Mungari mill expansion project, involving a $155 million engineering, procurement, and construction (EPC) contract awarded to GR Engineering Services, has garnered attention not only for its potential to boost gold production but also for its significant contribution to the regional workforce.
This endeavour, with a total investment of $250 million, is set to create a rise in employment opportunities within Australia.
The expansion project, located approximately 20 kilometres west of Kalgoorlie-Boulder, initially faced delays in June 2022 due to concerns over “unsustainable” labour costs. However, with the EPC contract now secured, work is scheduled to commence in January, marking a turning point in the project’s trajectory. Over the next 30 months, this initiative is expected to not only bolster gold production but also drive economic growth in the region.
A key objective of this expansion is to substantially increase Mungari’s processing capacity from its current 2 million tonnes per annum (Mpta) to an impressive 4.2 Mpta. This enhancement will enable the mine to produce approximately 200,000 ounces of gold annually during the first five years after commissioning, a remarkable leap from the current production rate of 135,000 ounces per annum.
In addition to enhancing production, Evolution Mining is committed to reducing all-in-sustaining costs by 18 per cent, aiming for a target of $1750 per ounce. This cost-cutting endeavour not only ensures the project’s long-term sustainability but also strengthens the competitiveness of the Mungari mine. Furthermore, the expansion project is poised to extend the mine’s life to 2038, securing its place as a cornerstone of the gold mining industry in the country.
The project’s timeline envisions commissioning by the end of the March quarter in 2026, representing a significant milestone for Evolution Mining.
Lawrie Conway, Managing Director of Evolution Mining, expressed his satisfaction with the contract award, emphasizing that it “secured the critical processing plant infrastructure within budgeted costs, locked in more than 60 per cent of the project costs, and secured a delivery time within the approved project schedule.” This achievement underscores the project’s potential to positively impact the region.
