en.Wedoany.com Reported - Australian engineering services company GR Engineering Services Ltd (ASX: GNG) and Ora Banda Mining Ltd (ASX: OBM) formally signed an engineering, procurement, and construction (EPC) contract worth AUD 233 million in mid-June 2026. The contract is for the construction of a new processing plant with an annual capacity of 3 million tonnes for Ora Banda's Davyhurst gold mine expansion project, located approximately 120 kilometers northwest of Kalgoorlie in Western Australia. The formal signing marks the transition of the preferred contractor arrangement announced on May 18, 2026, into the execution phase.
Founded in 1986 and headquartered in Perth, Western Australia, GR Engineering Services Ltd specializes in providing process engineering design, procurement, and construction services for the mining and mineral processing industries. The company has project execution experience in over 20 countries and employs more than 500 people. Ora Banda Mining Ltd is a gold exploration and mining company based in Perth, holding 100% ownership of the Davyhurst gold project, with a tenement area covering approximately 1,135 square kilometers.
Under the contract, GR Engineering will be responsible for the design, equipment procurement, construction, installation, and commissioning of the new processing plant. This plant is a core component of Ora Banda's "DRIVE to 300" expansion strategy, approved in May 2026, which aims to double annual gold production over the next three years, targeting a long-term production vision of approximately 300,000 ounces. The total capital expenditure for the expansion project is AUD 375 million. In addition to the AUD 233 million EPC contract, the remaining AUD 142 million is allocated for supporting infrastructure, owner's costs, and contingency expenses. The existing Davyhurst plant has a nameplate capacity of 1.2 million tonnes per year. Once the new plant is operational, if both plants run simultaneously, the combined processing capacity will increase to 4.2 million tonnes per year by fiscal year 2029. Construction of the new processing plant is scheduled to begin in the first quarter of fiscal year 2027, with commissioning targeted for the third quarter of fiscal year 2028. GR Engineering Managing Director Tony Patrizi stated that this contract award is a strong recognition of the company's process design track record and EPC delivery capabilities, and this order will further strengthen the company's contracted project pipeline for fiscal years 2027 and 2028.
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