Evolution hails ‘outstanding achievement’ at Mungari
Evolution Mining has begun the expansion of its Mungari mill in the Goldfields region of Western Australia with commissioning to continue through the June quarter 2025.
Commissioning of the mill expansion commenced nine months ahead of schedule, with the final costs expected to amount to $228 million – nine per cent below the anticipated $250 million budget.
Evolution called this an “outstanding achievement” by the project team.
The project plans to increase plant capacity from two million tonnes per annum (Mtpa) to 4.2Mtpa, extending the Mungari mine life to at least 2038.
Evolution sees the move boosting Mungari’s average annual production rate to 200,000 ounces in the coming years – a 50 per cent increase on the current annual production rate of 135,000 ounces.
Evolution managing director and chief executive officer Lawrie Conway said he is thrilled with the achievement, which was made possible by the company’s collaboration with contracting partners including GR Engineering Services, NRW Holdings and MLG Oz.
“Today we celebrate the operational handover of a construction project that has been executed safely, efficiently, ahead of the original schedule and under the original budget,” he said.
“This incredible achievement would not have been possible without the collective efforts of our employees, contracting partners … and local stakeholders, for which I am very thankful. It’s a proud moment for all of us and an important milestone for the Mungari operation, which will now transition back to a major cash contributor for Evolution.”
Evolution reported record cash levels in January driven by increased production levels and favourable gold prices from the December 2024 quarter.
The company enjoyed $561 million of operating mine cashflow and $263 million in net mine cashflow in the December quarter.
“Our cash flow materially increased by 54 per cent in the December quarter, reflecting the safe delivery of low-cost production and the benefits derived from the high metal price environment,” Conway said at the time.