GR Engineering Services has won a $36 million contract for upgrade and completion works on the Mungana polymetallic concentrator at Auctus Minerals’ Chillagoe operations.
Work on the engineering, procurement and construction contract will be carried out primarily through GR Engineering Services’ Brisbane office and is expected to be completed in April 2017.
The concentrator will be set up to process 500,000 tonnes of ore annually.
GR Engineering managing director Geoff Jones said the company was looking to increase its presence in Queensland, where it was actively pursuing several contracting opportunities.
“The award of this contract is a positive step in the successful implementation of this market strategy,” he said.
Auctus Minerals plans to restart mining at the mothballed Mungana site in October/November and to begin development of the nearby King Vol zinc project also in the fourth quarter of 2016 as it kicks off its $100 million Chillagoe project.
The peak workforce is expected to reach about 350, moving back to 230 once construction is finished and operations have reached steady state in the final quarter of 2017.
The private company holds a raft of former Kagara-owned assets in the area as a result of its $65 million takeover of Atherton Resources in late 2015.
People wishing to express interest in work on Auctus Minerals’ Chillagoe project should contact firstname.lastname@example.org