NRW notches $973m Super Pit contract

NRW Holdings has won a major $973 million contract to construct a processing plant under Northern Star Resources’ expansion plan for its Super Pit in Kalgoorlie.

The Subiaco-based goldminer awarded NRW’s subsidiary Primero Group the engineering, procurement and construction contract for its Kalgoorlie Consolidated Gold Mines growth project.

Primero’s scope of work includes designing, procuring, constructing, and commissioning of the process plant facilities by the third quarter of 2026.

According to the ASX announcement this morning, Primero said it participated in an early contractor involvement program from the start to 2022 to develop a design to bring operating benefits to the Fimiston processing plant at KCGM.

“The execution of the KCGM growth project is the culmination of an 18-month journey with Northern Star,” Primero managing director Michael Gollschewski said.

“The work conducted to date to develop the capital cost, design and execution strategy and schedule for the project has been one of the most comprehensive and rigorous early contractor involvement programmed we have participated in.

“The effort of the combined teams to define this key project has provided a solid foundation for a safe, efficient and successful delivery.”

The major contract win follows Northern Star Resources’ board giving the nod on a $1.5 billion investment to double the processing capacity at its KCGM star operation.

The expansion is expected to lift the goldminer’s processing capacity from 13 million tonnes per annum to 27mtpa following the three-year build.

On the ASX, NRW’s shares were trading down 0.59 per cent to $2.52 at 12:28PM AWST.

Northern Star’s shares were trading up 3.27 per cent to $12.48.