Canadian-based Allied Gold is advancing its West Africa operations, including the Kurmuk project, by appointing a contractor to oversee it all.
After conducting an exhaustive and competitive process, the company made the decision to award the Kurmuk mining contract to Mota-Engil Group, with preparations underway for mining operations to begin by mid-2025.
Mota-Engil, a multinational engineering and construction leader with nearly 80 years of expertise across Europe, Africa, and Latin America, brings significant experience to Kurmuk, supporting pre-production activities leading to achieve the company’s goals of first production by mid-2026.
This award aligns with Allied’s decision to advance pioneering activities and mining earthworks at an early stage, allowing sufficient time for mobilization of equipment and establishment of operations well ahead of the timeframe when mining begins, which will also allow for the early establishment of mining infrastructure, support facilities and training of personnel.
The appointment of the contractor for the mining services agreement marks a significant milestone for the Kurmuk Gold Project, which alongside the previously announced power purchase agreement, help cement and secure Kurmuk’s objectives of achieving production expected to average 290,000 ounces annually over the first five years, and sustaining over 240,000 oz. annually over a 10-year mine life.
As part of its operational improvement strategy, the company has been evaluating critical activities and services in its value chain across its producing assets, such as contract mining. Based on this analysis and the learnings from the competitive tendering process at Kurmuk, the company has decided to also award the contract for mining operations in Mali and Cote d’Ivoire to Mota-Engil, effectively consolidating mining operations for all operating mines and the Kurmuk project under one high quality mining contractor.
“In the context of this award, the Company also proceeded to facilitate Mota-Engil’s purchase of the mining equipment, inventory, spares, and other materials from the mine contractor operating Allied Gold’s West Africa operations and concurrently entered into new mine contractor agreements which better align key performance measures with the objectives of the Company and ensures better planning, management and operational oversight,” officials noted.
Allied’s assets are located in Côte d’Ivoire, Mali, and Ethiopia.
Source: Allied Gold