A $55 million contract could help a massive mineral sands project out of a recent slump, with MZI Resources awarding GR the job of building its flagship Keysbrook site.

The contract is currently contingent on MZI completing financing for the project, to be located 70km south of Perth. MZI says it will work out the specifics of the lump sum payment to GR in tandem with its financing negotiations.

The Keystone project seemed unlikely earlier this month, when the bank financing the debt walked away from the plan.

MZI chief executive Trevor Matthews said the appointment of GR Engineering shows Keysbrook is back on.

GR has been signed-up for design and construction of the concentrator and associated facilities at Keysbrook as well as modifications to the nearby mineral separation plant.

A number of construction contractors submitted proposals over a competitive few months. MZI said in a statement that GR Engineering’s minerals sands experience and local presence left it best placed to deliver desired outcomes.

GR’s share value increased by 1.5 per cent after the news this week.