King of the Hills Upgrade Contract Value Hits $155 Million with GR Engineering
GR Engineering has won a $79 million contract variation to advance the King of the Hills processing plant upgrade, pushing total project value to $155 million and increasing throughput capacity significantly.
- Awarded $79 million contract variation for Stage 2 Upgrade
- Total King of the Hills project contract now $155 million
- Upgrade to increase processing plant throughput to 7.5 million tonnes per annum
- Work to commence immediately, building on ongoing Stage 1 Upgrade
- Strong endorsement of GR Engineering’s performance by Vault Minerals
GR Engineering Expands Role at King of the Hills
GR Engineering Services Limited (ASX – GNG) has announced a significant contract variation worth $79 million with Vault Minerals Limited’s subsidiary, Greenstone Resources (WA) Pty Ltd. This variation extends the engineering, procurement, and construction (EPC) contract for the King of the Hills Operations Stage 2 Upgrade, located in Western Australia's Goldfields region.
The King of the Hills site, situated roughly 900 kilometres northeast of Perth and near Leonora, is undergoing a phased expansion. The Stage 2 Upgrade will dovetail with the ongoing Stage 1 works, enhancing the processing plant's capacity to handle 7.5 million tonnes per annum (Mtpa) of ore. This marks a substantial increase in throughput, positioning the operation for greater production efficiency and output.
Contract Value and Project Scope
The $79 million contract variation brings the total value of the King of the Hills project to $155 million. GR Engineering’s scope covers the full spectrum of activities from design and procurement through to construction, installation, and commissioning of the upgraded processing plant facilities. The immediate commencement of work signals confidence in project timelines and operational readiness.
Vault Minerals’ decision to award this additional stage reflects strong satisfaction with GR Engineering’s delivery to date. Managing Director Tony Patrizi highlighted this as a clear endorsement of their performance and expressed enthusiasm about continuing the partnership to ensure the project’s successful and safe completion.
Strategic Implications and Outlook
This contract extension not only boosts GR Engineering’s near-term revenue visibility but also reinforces its reputation as a trusted EPC partner in the mining services sector. For Vault Minerals, the upgrade is a critical step toward scaling operations and enhancing resource processing capabilities, which could translate into improved production metrics and financial outcomes in future reporting periods.
While the announcement does not detail the full timeline or financial impact on GR Engineering’s broader earnings, the immediate start and substantial contract size suggest positive momentum. Market watchers will be keen to track progress updates and assess how the expanded throughput capacity influences Vault Minerals’ operational performance.
Bottom Line?
GR Engineering’s expanded contract signals growing confidence in its execution capabilities and sets the stage for enhanced production at King of the Hills.
Questions in the middle?
- What is the detailed timeline for completion of the Stage 2 Upgrade?
- How will the increased throughput impact Vault Minerals’ production and revenue forecasts?
- What portion of the $79 million variation will be recognised in GR Engineering’s upcoming financial results?
