Eloise Expansion Risks: Can AIC Mines Deliver Growth Without Disruption?

Strategic Expansion of Eloise Processing Plant

AIC Mines has taken a significant step forward in its growth strategy by awarding a fixed-cost engineering, procurement, and construction (EPC) contract worth $77.6 million to GR Engineering Services Limited. The contract covers the expansion of the Eloise copper processing plant in North Queensland, increasing its throughput capacity from the current 725,000 tonnes per annum (tpa) to 1.1 million tpa.

This expansion is designed to accommodate the ramp-up in production expected from the nearby Jericho copper deposit, which is forecast to boost annual copper concentrate output to over 20,000 tonnes by fiscal year 2028. The project includes the installation of new crushing, screening, grinding, flotation, and filtration circuits, all engineered to minimize disruption to ongoing operations at Eloise.

Forward-Looking Equipment Oversizing

Notably, the contract includes approximately $11.4 million allocated for oversized equipment. This forward-thinking approach allows for a relatively straightforward future expansion to 1.5 million tpa throughput capacity, although this second stage remains aspirational and contingent on further resource drilling success and commercial viability assessments.

By integrating oversized crushing, grinding, and filtration circuits now, AIC Mines aims to avoid the higher costs and operational delays typically associated with retrofitting equipment later. This strategy reflects a commitment to operational flexibility and long-term growth potential within the Eloise mine and surrounding regional deposits.

Timeline and Operational Impact

Construction is slated to commence in October 2025, following earthworks beginning in August. The expanded plant is expected to be ready for commissioning in the December 2026 quarter, aligning with the anticipated first development ore from the Jericho deposit in mid-2026. Throughout the construction phase, the design prioritizes minimizing impact on current mining and processing activities, ensuring continuity of production.

GR Engineering brings extensive experience in sulphide base metals processing projects, positioning them well to deliver this critical expansion safely and efficiently. AIC Mines’ Managing Director Aaron Colleran emphasized the collaborative relationship with GR Engineering and the transformative potential of this project for the Eloise asset.

Broader Implications for AIC Mines’ Growth

The Eloise mine, acquired by AIC Mines in 2021, has a long history of high-grade copper and gold production. This expansion is a cornerstone of the company’s strategy to build a robust portfolio of copper and gold assets in Australia. The increased processing capacity will enable AIC Mines to capitalize on the growing resource base, particularly the Jericho deposit, which remains open for further exploration.

While the 1.5Mtpa throughput remains a long-term goal rather than a committed target, the current expansion lays the groundwork for sustained production growth and enhanced shareholder value. Investors and analysts will be watching closely as construction progresses and as further drilling results clarify the potential for subsequent expansions.