GR Engineering Secures $225M EPC Role for Tower Hill Gold Project
GR Engineering Services has been named preferred contractor for the $225 million Tower Hill Gold Project near Leonora, marking a significant milestone in its mining sector portfolio.
- Appointed preferred EPC contractor by Genesis Minerals
- Project involves ~4 Mtpa gold processing facility near Leonora, WA
- Contract valued at approximately $225 million
- Critical long lead items worth $20 million to be ordered imminently
- Contract finalisation expected by March 2026
A Major Win for GR Engineering
GR Engineering Services Limited (ASX: GNG) has been appointed as the preferred contractor by Genesis Minerals Limited (ASX: GMD) for the engineering, procurement, and construction (EPC) of the Tower Hill Gold Project. This award represents a significant contract valued at around $225 million, underscoring GR Engineering’s growing footprint in Western Australia's gold mining infrastructure sector.
Project Scope and Strategic Importance
The Tower Hill Gold Project, located near Leonora in Western Australia, involves the design and construction of a gold processing facility with an estimated capacity of approximately 4 million tonnes per annum. The project is a key component of Genesis Minerals’ growth strategy, aiming to bolster gold production capabilities in a region known for its rich mineral deposits.
Contract Details and Next Steps
With the EPC contract expected to be finalised by March 2026, GR Engineering is set to commence ordering critical long lead items valued at about $20 million imminently. These early procurement activities are crucial to maintaining the project’s timeline and ensuring a smooth construction phase. The contract’s finalisation will mark a pivotal step in transitioning from planning to execution.
Industry Implications and Company Outlook
Managing Director Tony Patrizi highlighted the appointment as a strong endorsement of GR Engineering’s expertise in process design and EPC delivery within the gold sector. This contract win not only strengthens GR Engineering’s project pipeline but also signals confidence from Genesis Minerals in their ability to deliver complex mining infrastructure safely and efficiently.
For investors and industry watchers, this development may signal a positive trajectory for GR Engineering’s financial performance and market positioning, particularly as the company leverages its proven capabilities in Western Australia’s competitive mining services landscape.
Bottom Line?
As GR Engineering moves toward contract finalisation, all eyes will be on its execution capabilities and the broader impact on Western Australia’s gold mining sector.
Questions in the middle?
- Will the final contract terms align with the initial $225 million estimate?
- How will GR Engineering manage supply chain risks for critical long lead items?
- What are the projected timelines for commissioning and production ramp-up?
