GR Engineering has won a $16 million contract with Saracen Mineral for the engineering, procurement and construction of it Carosue Dam crushing project near Kalgoorlie.

GR said it would begin design work immediately with project completion scheduled in the December quarter.

Revenue from the contract would be split 40/60 over 2013 and 2014 financial years.

The project represents a key component of Saracen's plan to expand Carosue Dam processing plant throughput capacity to 3.2 million tonnes year.