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.
MGO Mill at Mungari - Photo: Gold Industry Group
Elevating Opportunities in the Gold Mining Sector: As Evolution’s ambitious venture unfolds, it brings to the forefront the relevance of the Gold Industry Group's Gold Jobs platform. This platform serves as a crucial resource for individuals seeking rewarding careers in the gold mining industry. Whether you're interested in mining, engineering, environmental management, or other related fields, the Gold Jobs platform offers a diverse range of positions and opportunities to explore.
Beyond the technical and financial aspects of this expansion project, one of the most significant impacts will be on employment in Australia. With work set to begin in January and spanning over two years, this project is expected to provide a substantial number of jobs for all Australians across various fields, from construction to operation and maintenance. This infusion of employment opportunities not only stimulates the local economy but also fosters valuable career growth for the region's workforce.
The Evolution Mining Mungari mill expansion project is a resounding testament to the resilience and potential of Australia's mining sector. As the project progresses, it will not only contribute to the growth of the gold mining industry but also offer a number of opportunities for the local Goldfields region.
As this venture continues to evolve over the coming months and years, it will be closely watched, not only for its impact on the gold market but also for its pivotal role in shaping the future of the Australian mining industry and the livelihoods it sustains.
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