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Highlights:

  • AIC Mines awards fixed-cost EPC contract worth $77.6 million to GR Engineering for Eloise plant expansion.

  • Expansion to increase processing capacity from 725,000tpa to 1.1Mtpa, with commissioning expected in December 2026 quarter.

  • Oversized equipment included to facilitate a future upgrade to 1.5Mtpa throughput.

AIC Mines Limited (ASX:A1M) has announced the award of a $77.6 million fixed-cost Engineering, Procurement, and Construction (EPC) contract to GR Engineering Services Limited (ASX:GNG) for the expansion of its Eloise copper processing facility in Queensland. The contract represents a major step in the company’s plans to increase production capacity and align processing capabilities with upcoming production at the nearby Jericho deposit.

The EPC contract will facilitate an increase in the Eloise facility’s throughput capacity from the current 725,000 tonnes per annum (tpa) to 1.1 million tpa. The contract includes approximately $11.4 million allocated for oversized equipment, which has been strategically selected to allow for a simplified future expansion to 1.5 million tpa, pending further resource extension success.

Expansion Scope and Timeline

The project scope includes the design, procurement, construction, installation, and commissioning of several key processing components, such as:

  • A new crushing and screening plant,

  • A new grinding and classification circuit,

  • A new rougher flotation cell, and

  • A new concentrate filtration circuit.

Preliminary engineering and project setup activities are already underway. Earthworks are scheduled to begin in August 2025, with construction of new plant infrastructure expected to start in October 2025. The expansion is planned to be tied in and commissioned during the December 2026 quarter.

The construction has been strategically designed to minimise disruption to existing Eloise operations during the expansion period.

Strategic Alignment with Jericho Project

The plant expansion is timed to align with the development of the Jericho copper deposit, where first development ore is anticipated in June 2026. The expanded facility will support the planned production ramp-up from Jericho and is expected to boost AIC Mines’ annual copper concentrate output to over 20,000 tonnes from FY28 onwards.

Cost and Risk Management

The EPC contract is structured on a fixed-cost basis to mitigate the risk of budget overruns and provide greater certainty around project delivery timelines. In addition to the $77.6 million cost, $1.4 million will be allocated on a cost-plus basis for bulk earthworks. No contingency amount is included within the contract.

By including oversized processing circuits in the initial phase, AIC Mines is proactively positioning the facility for a future capacity uplift to 1.5Mtpa, though the timing for this second phase remains subject to continued drilling success and resource growth at surrounding deposits.