Metso increases Australian footprint

Finland-based Metso Corporation will provide several pieces of crushing and grinding equipment for De Grey Mining's flagship Hemi gold project in Western Australia's Pilbara region. 

The combined order value - comprised of a MKIII 50-65 primary gyratory crusher and two 14 megawatt ball mills - is more than €20 million, or $A32.9 million.

The purchase order has provided another opportunity for Metso, which specialises in mining equipment production and servicing, to further increase its presence in Australia.

Presently it has seven service centres throughout the Asia-Pacific region, with its Karratha facility, due to be opened in March, set to be the biggest within Metso's global portfolio.

De Grey's managing director Glenn Jardine said the equipment would play an important role in Hemi becoming a gold production powerhouse.

“Our aim with the Hemi gold project is to deliver a Tier-1 gold project and make a future top-5 Australian gold mine from a production perspective," he said.

"The 10+ million tonnes per annum process circuit will be equipped with state-of-the-art equipment and proven technologies contributing to responsible ore processing.

"We’ve just partnered with Metso in delivering the first key items for the process circuit, namely the primary gyratory and ball mills, and we’re looking to make the rest of the process equipment decisions soon.

"De Grey will make a series of payments according to milestones achieved over the manufacturing period and final commissioning, typical for contracts of this nature, commencing in March 2024." 

During a project update on February 13, ASX-listed De Grey said it presently had four exploration drill rigs on site, with an expansive range of activities planned this year. 

Last month, De Grey also told the market it had shortlisted 11 global financial lenders to potentially bankroll the Hemi project, which is set to cost $1.3 billion. It is hopeful of receiving credit-approved term sheets by the middle of 2024. 

The West Perth-based company also completed a $300 million capital raise during its December 2023 quarter to aid Hemi's progression.

De Grey last traded at $1.23 per share as of 9.10am AWST.