Saunders Secures $27M Kalgoorlie Contract to Boost Gold Processing Capacity
Saunders International has landed a $27 million contract to install critical processing tanks at Kalgoorlie Consolidated Gold Mines, reinforcing its growing presence in Western Australia's mining sector.
- Awarded $27 million contract for CIL4 tanks installation
- Project supports increased throughput at Northern Star's Fimiston Processing Plant
- Second major contract at Kalgoorlie site following $31.5 million award in 2024
- Project commencement immediate, completion expected November 2025
- Positive revenue and earnings impact anticipated for FY25 and FY26
Saunders Expands Footprint in Western Australia
Saunders International Limited (ASX: SND) has announced a significant new contract win, securing a $27 million project to install carbon-in-leach (CIL) tanks and associated process infrastructure at Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia. This contract, awarded by Primero, marks a continuation of Saunders’ growing involvement in one of Australia's most prominent gold mining regions.
Project Details and Strategic Importance
The scope of work includes the construction of eight CIL tanks and interconnecting launders, along with seven process tanks designed to enhance the throughput capacity of Northern Star Resources' Fimiston Processing Plant. The upgrade is a critical component in supporting increased gold processing volumes, reflecting ongoing investment in operational efficiency and capacity expansion at KCGM.
Building on Previous Success
This contract follows a $31.5 million award secured by Saunders in May 2024 for another major project at the same site, which remains underway with a scheduled completion in mid-2026. The back-to-back contracts underscore Saunders’ trusted reputation for delivering complex engineering and construction solutions within challenging mining environments.
Financial and Operational Outlook
With work commencing immediately and expected to conclude by November 2025, the project will contribute positively to Saunders’ revenue and earnings for both the current and next financial years. Managing Director Mark Benson highlighted the contract as a testament to the company’s integrated capabilities and its ability to execute safely and collaboratively in the resources sector.
Looking Ahead
As Saunders consolidates its position in Western Australia’s mining services market, this contract win signals confidence from major industry players in the company’s technical expertise and delivery track record. The successful execution of these projects will be closely watched by investors as indicators of Saunders’ growth trajectory and operational resilience.
Bottom Line?
Saunders’ latest Kalgoorlie contract cements its role in expanding gold processing capacity, setting the stage for sustained growth.
Questions in the middle?
- How will Saunders manage overlapping projects at Kalgoorlie to ensure timely delivery?
- What are the potential risks or challenges that could impact project completion by November 2025?
- Could this contract lead to further opportunities with Northern Star Resources or other mining operators in the region?
