KGL Resources has awarded CIMIC Group company Sedgman a design, procurement and construction contract for the processing plant at the $362 million Jervois copper project in the Northern Territory.

KGL described this as an important step in progressing the project as it heads towards a target of first sulphide mill feed and process-plant commissioning in the first half of 2028. KGL

The Jervois processing plant is designed for 2.0Mtpa throughput, using conventional crushing, grinding, flotation and thickening to produce a single copper concentrate.

“The Jervois copper project is one of the Northern Territory’s most advanced copper developments and will have an important role in the supply of a metal essential to electrification and the global energy transition,” CIMIC Group president and executive director Roberto Gallardo said.

“Sedgman’s appointment demonstrates the value of bringing together engineering, procurement and construction expertise to progress strategic resource projects with certainty and efficiency.”

KGL Resources (ASX: KGL) chief executive officer Sam Strohmayr said advancing the Jervois copper project into design, engineering and construction was a critical step in progressing the project towards operations.

“Sedgman’s deep technical knowledge of the asset and processing requirements, substantial experience in project delivery, and continuity from earlier study phases position the Sedgman team well to partner with the KGL owners’ team in the development of the Jervois copper project.

“Both teams have worked collaboratively throughout the development and negotiation of the contract. KGL looks forward to continuing this partnership approach through the construction and commissioning phases of the project.”

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The new Sedgman contract comes after a $300 million equity raising which sees Jervois fully funded through construction and into production, with preparatory development activities underway.

The company recently executed a $36 million contract with Northern Transportables for the design, manufacture, supply, transport, installation and commissioning of an 180-person accommodation village and associated mine infrastructure area buildings.

A baseline economic model for the project was released in April showing a post-tax NPV of $839 million and an IRR of 31 per cent, with a simple payback of 3.1 years on a 10-year mine.