Boab Metals Locks $109M EPC Deal to Relocate DeGrussa Plant for Sorby Hills
Boab Metals has sealed a $109 million EPC contract with GR Engineering to refurbish and relocate the DeGrussa processing plant to its Sorby Hills project, aiming for concentrate production by mid-2027.
- EPC contract signed with GR Engineering for Sorby Hills plant
- DeGrussa processing facility to be dismantled, refurbished, and relocated
- Construction teams mobilising with early works underway
- Commercial concentrate production targeted for second half of 2027
- Project execution accelerated following DeGrussa plant acquisition
Major EPC Contract Advances Sorby Hills Project
Boab Metals (ASX:BML) has taken a decisive step toward production at its Sorby Hills Silver-Lead Project by executing a $109 million engineering, procurement and construction (EPC) contract with GR Engineering Services (ASX:GNG). The agreement tasks GR Engineering with dismantling, refurbishing, relocating, and reassembling the DeGrussa processing plant to Sorby Hills, adapting it to Boab’s processing requirements.
The DeGrussa plant, originally operated by Sandfire Resources in Meekatharra from 2011 to 2024, is a comprehensive facility featuring crushers, mills, flotation circuits, and thickeners, all designed to support a 100,000 tonnes per annum concentrate throughput. By repurposing this existing infrastructure, Boab aims to streamline capital expenditure and expedite Sorby Hills’ path to production.
Construction Momentum Builds with Early Works
Early engineering activities and procurement of long-lead items are already underway, with construction crews preparing to mobilise to both the DeGrussa and Sorby Hills sites imminently. On-site development at Sorby Hills is intensifying, underscoring Boab’s commitment to meeting its production schedule.
The company remains on track for commercial concentrate output in the second half of 2027, a timeline that aligns with prior milestones, including the recent completion of the DeGrussa plant acquisition from Sandfire for $10 million, which effectively de-risked the project execution phase DeGrussa plant acquisition.
Strategic Collaboration with Experienced EPC Partner
Boab’s Managing Director Simon Noon highlighted GR Engineering’s proven track record in delivering mineral processing projects across Australia and their early involvement in Sorby Hills, which has fostered a strong alignment on project execution strategy. This partnership is pivotal as Boab transitions from development to operational readiness.
The EPC contract represents a significant portion of Boab’s capital expenditure, complementing the $236 million syndicated debt facility secured in April 2026 to fund Sorby Hills’ construction and ramp-up phases A$236 million syndicated debt. This financial backing, alongside the diesel supply contract and regulatory approvals previously obtained, creates a robust foundation for the project’s advancement.
Logistical Advantage and Regional Infrastructure
Located 50 kilometres from Kununurra in the East Kimberley, Sorby Hills benefits from proximity to sealed roads facilitating concentrate transport to Wyndham Port, approximately 150 kilometres away. This logistical setup is critical to operational efficiency and cost management as Boab prepares for commissioning and commercial production.
Bottom Line?
Boab’s EPC contract execution and plant relocation strategy mark a tangible leap toward Sorby Hills’ first concentrate, but the complexity of dismantling and recommissioning a major processing facility will require careful oversight to avoid schedule or cost overruns.
Questions in the middle?
- How will Boab mitigate risks associated with relocating and refurbishing the DeGrussa plant?
- What contingency plans are in place should construction or commissioning timelines slip?
- How will ongoing market conditions for silver and lead influence Sorby Hills’ commercial viability post-production?
