Develop Global Awards A$275m EPC Contract for Yitirrti Processing Plant
Develop Global has locked in GR Engineering to build its Yitirrti processing plant in the Pilbara, advancing a project on track for mid-2028 production and backed by a US$400 million Trafigura financing deal.
- A$275 million EPC contract awarded to GR Engineering
- Yitirrti plant capacity of 1.5 million tonnes per annum
- Total project capital cost estimated at A$450 million
- Funded by US$400 million Trafigura facility and internal cashflow
- Production scheduled for June quarter 2028
Major EPC Contract Advances Yitirrti Development
Develop Global (ASX:DVP) has taken a significant step forward in its Pilbara copper-zinc-silver project by awarding a A$275 million engineering, procurement, and construction (EPC) contract to GR Engineering Services Limited (ASX:GNG). The contract covers the design and construction of the processing plant at Yitirrti, formerly known as Sulphur Springs, which will have a nameplate capacity of 1.5 million tonnes per annum and produce separate copper-silver and zinc concentrates.
Project Funding and Financial Metrics
The total capital expenditure for Yitirrti is pegged at around A$450 million, including the processing plant. This investment is underpinned by a US$400 million (approximately A$570 million) debt facility secured from commodity trader Trafigura, supplemented by Develop's cash reserves of A$123 million as of June 30, 2026, and cashflow from its Woodlawn and Pioneer Dome operations. Trafigura has also committed to offtake agreements for copper and zinc concentrates, providing a degree of revenue certainty.
Construction Progress and Production Timeline
Construction activities are progressing on schedule, with access roads and earthworks well advanced and underground development ahead of plan. Develop remains on track to deliver first concentrate by the June quarter of 2028. This timeline aligns with the company's broader strategy to ramp up cashflow generation, leveraging steady-state production at Woodlawn and anticipated direct shipping ore (DSO) lithium sales from Pioneer Dome in Western Australia starting in the December quarter of 2026.
GR Engineering’s Track Record and Strategic Fit
GR Engineering brings proven expertise to the project, having successfully refurbished and upgraded the processing plant at Develop's Woodlawn copper-zinc mine in New South Wales. That plant has already achieved steady-state throughput rates and is performing strongly, which bodes well for the Yitirrti project’s execution. Managing Director Bill Beament highlighted the importance of this contract as a milestone towards production and cashflow generation at Yitirrti.
Multi-Project Growth Outlook
Develop Global is positioning itself for substantial growth in free cashflow, with three operating projects across Australia. Woodlawn’s output has surged recently, supported by the Trafigura financing deal, while Pioneer Dome targets initial lithium sales later this year. The Yitirrti project will add a significant new copper-zinc-silver operation to this portfolio, expected to contribute robust returns with a forecast internal rate of return of 37% and a payback period of just 23 months, according to prior company guidance.
Bottom Line?
With construction well advanced and funding secured, Develop Global is set to expand its footprint in Australian base metals, but the next two years will test its execution capabilities amid a complex multi-project ramp-up.
Questions in the middle?
- How will Develop manage execution risks across simultaneous projects at Yitirrti, Woodlawn, and Pioneer Dome?
- What impact will commodity price fluctuations have on the projected 37% IRR for Yitirrti?
- Could further offtake agreements or financing deals emerge to support Develop’s growth ambitions?
