Primero Group has secured an engineering, procurement, and construction (EPC) contract of around A$973m ($651m) from Northern Star Resources pertaining to the Kalgoorlie Consolidated Gold Mines (KCGM) growth project in Western Australia.
Under the contract, the fully-owned subsidiary of Australian mining contractor NRW will deliver design, procurement, construction, and commissioning services for the process plant facilities at the project.
The signing of the EPC contract has been done after an extensive programme of work for determining the scope, cost, and schedule.
Located near Kalgoorlie-Boulder city about 600km east of Perth, the KCGM operations include the Fimiston open pit, Mt Charlotte underground mine as well as the Fimiston and Gidji processing plants.
Primero Group has been involved in a competitive early contractor involvement (ECI) programme from January 2022.
The company has also collaborated with the Northern Star Resources project team to build a technically better design to bring operating benefits to the Fimiston processing plant.
After the ECI programme, Primero was engaged to execute further value engineering and scope development.
The commercial model for the EPC delivery is an incentivised target cost (ITC), said NRW.
Primero Group aims to complete the EPC contract at the KCGM growth project by Q3 2026.
Primero managing director Michael Gollschewski said: “The execution of the KCGM Growth Project is the culmination of an 18-month journey with Northern Star.
“The work conducted to date to develop the capital cost, design, execution strategy and schedule for the project, has been one of the most comprehensive and rigorous ECI programmes we have participated in.”
