The EPC contract is scheduled for completion by Q3 2026. Credit: Primero.

NRW Holdings subsidiary Primero Group has received a A$973m ($648.2m) engineering, procurement and construction (EPC) contract from gold mining company Northern Star Resources for the Kalgoorlie Consolidated Gold Mines (KCGM) Growth Project in Kalgoorlie, Western Australia.

Planned for completion by Q3 2026, the contract entails the design and construction of the process plant facilities at the KCGM Growth Project.

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The agreement also follows the completion of an extensive work programme to define the scope, cost and schedule.

Under the contract, Primero will design, procure, construct and commission the process plant facilities at the KCGM mill.

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 [early contractor involvement] programmes we have participated in.”

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Last month, Northern Star made a final investment decision on the A$1.5bn expansion of the processing capacity at KCGM in Kalgoorlie-Boulder, 600km east of Perth.

The project aims to boost KCGM’s processing capacity from 13 million tonnes per annum (mtpa) to 27mtpa.

It includes the optimisation and expansion of the Fimiston processing plant at the mine.

KCGM is one of the largest gold mines in the world, with a mineral resource of 28.3 million ounces (moz) and ore reserves of 12.2moz.

Northern Star managing director Stuart Tonkin earlier said: “Expanding the processing capacity of KCGM will strengthen Northern Star’s portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the second quartile of the global cost curve.”