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The Northern Territory’s copper industry is set for a boost after KGL Resources approved the development of its Jervois project, with construction expected to begin in early 2027.
The decision marks the project’s transition into full execution, with funding secured and first copper concentrate production targeted for the first half of 2028.
Located approximately 380km north-east of Alice Springs, Jervois is expected to create up to 350 jobs during construction and support up to 550 ongoing positions once operational.
KGL said the project’s capital cost estimates remain consistent with its previously released baseline economic model, following a review of the construction schedule, contingencies and remaining expenditure.
Funding for the development comprises existing cash reserves, proceeds from a streaming agreement with Wheaton Precious Metals and recently raised equity. The streaming proceeds remain subject to conditions precedent.
KGL chairman Jeff Gerard said the final investment decision (FID) reflected the project’s readiness to move into construction.
“Delivery of the FID for our Jervois Copper Project reflects the technical, commercial, organisational and funding maturity of this Project,” Gerard said.
“With funding for the project already in place, and with 60 per cent of the project costs already contracted, we are well positioned to meet our target of delivering copper concentrate production from the Jervois Project in the first half of calendar 2028.”
Site preparations are progressing, including construction village works, access roads, water infrastructure and the demolition of historical processing facilities.
Engineering contractor Sedgman signed the processing plant engineering, procurement and construction contract in September, while commitments have been made for major equipment including grinding mills, flotation cells and an IsaMill.
Principal construction is expected to commence in early 2027, with the project targeting an initial 10-year mine life and an annual steady-state production of approximately 30,000 tonnes of copper, along with by-product silver and gold.
Northern Territory Deputy Chief Minister and Minister for Mining and Energy Gerard Maley welcomed the announcement, which follows the recent groundbreaking at Arafura’s Nolans rare earths project.
“The Jervois project will create hundreds of jobs for Territorians and deliver significant economic opportunities, demonstrating the vital role the resources sector continues to play in growing the Territory economy,” Maley said.
Local businesses are already participating in the development, including Northern Transportables, which secured an approximately $36 million contract to deliver accommodation and site infrastructure. Contracts have also been awarded to Black Cat Civil, MEC NT and other Central Australian businesses.
Alongside construction, KGL is progressing a $20 million exploration program covering 2026–28, targeting resource expansion and discoveries across its tenements.
The company expects a six-month ramp-up to full processing capacity during 2028, with underground development scheduled to begin in 2029.
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