Red 5 awards MACA contract ahead of mine restart

Part shells of the 36-foot SAG mill being loaded for transport. Image: Red 5

MACA has won a $129 million engineering, procurement and construction (EPC) contract and bulk earthworks at Red 5’s King of the Hills gold project in Western Australia.

The EPC contract and bulk earthworks encompass the project’s processing facility and equipping of the bore fields, power distribution, workshop and warehouse.

It also includes the purchase of a six million tonnes a year gyratory crusher and four million tonnes a year SAG mill, which are being transported ahead of planned delivery in the June quarter of next year. The process plant bulk earthworks are scheduled to commence in December.

The contract award gives way to the immediate commencement of the design and procurement activities for the process plant, and mobilisation of earthmoving equipment to site.

“Our decision to award these key contracts and make commitments to significant long-lead items prior to completing project debt funding reflects our confidence in the robustness of the King of the Hills project,” Red 5 managing director Mark Williams said.

“Importantly, the commitments made to date are below budget for this stage of the (King of the Hills) project, and … we are well on track to progress the development of this major project, with production planned to start in June quarter 2022.”

Red 5 has purchased a 24-bed camp accommodation, awarded a design and construction contract for a 450-person village and secured an early works agreement with APA Group for the gas pipeline lateral.

The company aims to develop King of the Hills into a mine of 2.4 million ounces capacity for a 16-year mine life.

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