Binduli North and Ulysses Gold Mine project wins
A surging resources sector riding high on gold prices and production is flowing through to more work for service companies in Western Australia.
CPC Engineering has started work on two gold projects near Kalgoorlie as companies seek to benefit from a gold price of more than $US1,841 an ounce (as at 3 February 2021).
Mines Minister Bill Johnston has said gold sales soared to an all-time high of almost $16 billion in 2019/20, with prices averaging more than $2,300 per ounce.
The gold price is also behind a spike in exploration activity, with Mr Johnston saying applications related to gold accounted for 70 per cent of Programme of Works applications to the Department of Mines, Industry Regulation and Safety that have hit a five-year high.
The Office of the Chief Economist predicts gold exports to reach a record $32 billion in 2020/21, with prices averaging $US1,770 an ounce this year before easing to $US1,620 an ounce in 2022.
Against that background, CPC has started work on projects for Norton Gold Fields at its Binduli North operation on the outskirts of Kalgoorlie, and Genesis Minerals Limited Ulysses Gold Mine, 200km north of Kalgoorlie.
CPC will deliver a Definitive Feasibility Study for a 1.6mtpa gold processing plant at the Ulysses mine, and provide the detailed design for a 5mtpa heap leach facility at Norton’s Binduli operation.
If the heap leach facility progresses, it will be Australia’s largest.
CPC Engineering chief executive officer Glen Weir, who has more than 40 years’ experience in the minerals resource sector, said it was clear that companies were seeing the surging gold price as an opportunity to progress their operations.
“Confidence is certainly high in the resources sector at the moment in WA, from exploration through to mining” Mr Weir said.
“These contracts reflect CPC’s experience and expertise and hard-earned reputation for delivering for our clients built up over 50 years of operation in WA.”