- 01KGL approves full construction of Jervois copper project.
- 02Project considered funded; 60% of costs contracted.
- 03First copper concentrate targeted for H1 2028.
- 04Site preparation and construction works are advancing.
KGL Resources (ASX: KGL) has approved a final investment decision (FID) for its Jervois Copper Project in the Northern Territory, clearing the way for full construction and execution.
The developer remains on course to produce its first copper concentrate in the first half of 2028, with approximately 60% of total project costs already covered by executed contracts.
Its board has reaffirmed the capital estimates and project economics set out in the April 2026 Baseline Economic Model (BEM), after allowing for changes in scope and current pricing.
The investment decision follows completion of project controls, validation of schedule contingencies, and cost-to-complete estimates and work to finalise remaining interfaces with the processing plant contractor.
KGL considers Jervois fully funded through existing cash reserves, recently raised equity, and proceeds from a streaming arrangement with Wheaton Precious Metals that remain subject to conditions precedent.
Construction Readiness
KGL signed an engineering, procurement, and construction contract with Sedgman in September, establishing a central delivery package for the plant.
Engineering and design have advanced alongside commitments for long-lead equipment, including grinding mills, flotation cells and the IsaMill.
Negotiations are progressing for major civil works, the water pipeline and accommodation infrastructure, while the mining services agreement is in its final stages.
“From a project viability perspective, the Board is satisfied that the FID confirms that all aspects of the previously released BEM remain valid, [while] also demonstrating that we have the owners’ team and structures in place, and that we are contracting with reliable partners to safely execute the project,” chair Jeff Gerard said.
“With funding already in place, and with 60% of the project costs already contracted, we are well positioned to meet our target of delivering copper concentrate production from Jervois in the first half of calendar 2028.”
Work Advancing Across Jervois
On-site preparation includes the establishment of a construction village, upgrades to the exploration camp, and crushing and screening of materials for civil construction.
KGL has also demolished historical processing facilities and developed water sources needed to support the construction program.
A 72-room construction camp has been installed, while work is under way on a further 180-room village and associated access roads.
Charter flights and catering arrangements are in place for enabling works, with the owner’s delivery team continuing to expand and required permits and authorisations being maintained.
The project is designed for an initial 10-year mine life and targeted steady-state annual copper production of approximately 30,000 tonnes, alongside silver and gold by-products.
Production Schedule Set
KGL expects open-pit mining to begin in mid-2027, with sulphide ore stockpiled ahead of processing plant commissioning and first concentrate production in the following year.
A six-month ramp-up during 2028 is planned to bring the plant to full processing capacity, including checks on mill throughput, metallurgical recovery, and design compliance, with underground development scheduled from 2029.
Alongside construction, KGL is pursuing a $20 million exploration plan spanning 2026 to 2028, incorporating resource expansion drilling and higher-resolution magnetotelluric geophysical surveys.
The production forecasts remain subject to the assumptions in the BEM, which KGL cautions may not be achieved as a result of commodity market conditions and other development risks.
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