GR Engineering Services has secured a A$36m ($27m) contract for the design and construction of Auctus Resources' Mungana facility located at Chillagoe in Northern Queensland, Australia.
Under the engineering, procurement and construction (EPC) contract, GR Engineering will provide services that are associated with the Mungana zinc, lead, copper and gold concentrator facility, which has a capacity of 500,000t per year.
GR Engineering Services managing director Geoff Jones said: “GR Engineering looks forward to working with Auctus and to establishing a long-term relationship with this first time client through the delivery of successful outcomes for the Mungana Project.
“We are seeking to increase our presence in Queensland, where we are actively pursuing several contracting opportunities. The award of this contract is a positive step in the successful implementation of this market strategy.”
The company plans to perform the work primarily through its Brisbane office with immediate effect and completion is slated to take place during April next year.
Auctus Resources executive chairman Steve Murdoch said: “We are looking forward to progressing the Mungana Project construction phase with our new partner GR Engineering.
“We selected GR Engineering on the basis of it having a strong history in completing base metal concentrators on time, budget and achieving required performance criteria.”
Located next to the partially completed Mungana processing facility, the area includes the Mungana, Griffiths Hill and Red Dome deposits.
It also has the Lady Jane, Girofla and Mungana mine sites.