3 July 2023 Primero awarded EPC contract for KCGM Growth Project...

3 July 2023

Primero awarded EPC contract for KCGM Growth Project


NRW Holdings Limited (ASX: NWH) is pleased to announce that its wholly owned subsidiary Primero Group Limited (Primero) has entered into a contract for Engineering, Procurement and Construction (EPC Contract) with Northern Star Resources Limited (ASX: NST) for its KCGM Growth Project in Kalgoorlie, Western Australia.

The execution of the EPC Contract follows an extensive programme of work to define the scope, cost, and schedule.

Under the EPC Contract, Primero will be responsible for the design, procurement, construction, and commissioning of the process plant facilities.
The commercial model for the EPC delivery is an Incentivised Target Cost (ITC).
The EPC Contract has an approximate value of $973 million.
The EPC Contract is scheduled for completion by Q3 2026.

Primero participated in a competitive Early Contractor Involvement (ECI) program from January 2022 and has worked with the Northern Star project team to develop a technically superior design that will bring operating benefits to the Fimiston Processing Plant.
Following the ECI programme, Primero was engaged to undertake further value engineering and scope development.

Primero's Managing Director, Michael Gollschewski shared “The execution of the KCGM Growth Project is the culmination of an 18-month journey with Northern Star. The work conducted to date to develop the capital cost, design, execution strategy and schedule for the project, has been one of the most comprehensive and rigorous ECI programmes we have participated in. The effort of the combined teams to define this key project has provided a solid foundation for a safe, efficient, and successful delivery.”

NRW's Managing Director, Jules Pemberton stated, “This EPC Contract reinforces Primero's reputation as a leading provider of world class engineering and construction services. This project showcases Primero's full range of in-house capability. I look forward to developing a long-term relationship with one of the industry's leading gold producers.”