Gruyere gold contract to create hundreds of jobs in Western Australia

The Gruyere site. Image: Gold Road Resources

Gold Road Resources, with project partner Gold Fields, has signed a $298 million engineering, procurement and construction contract with the Amec Foster Wheeler Civmec Joint Venture (ACJV) for the Gruyere gold project in Western Australia.

Confirmation of the contract, which ACJV was named as the preferred contractor for in April, allows work on the design, procurement and installation of the process plant and associated infrastructure to start.

ACJV expects to have up to 300 workers on site during the project’s peak construction period, while up to 50 jobs will be created in Perth during fabrication of the process plant and infrastructure components.

Gold Road managing director Ian Murray said execution of the contract was another key milestone in the delivery of Gruyere into production.

“Importantly, this contract will focus on maximising the local content in the construction of Gruyere and generating significant employment opportunities in the Goldfields region and Western Australia more broadly,” Murray said.

Gruyere is a 50:50 joint venture between Gold Road and South Africa’s Gold Fields. The EPC contract has been executed as a lump sum, fixed price contract valued at $298 million.

ACJV plans to maximise procurement through local Australian sources for the supply of steel and equipment for the project. The JV expects to start mobilising its workforce at the Gruyere site in August.

Amec Foster Wheeler mining director Greg Hayes commented: “ACJV combines Amec Foster Wheeler’s world class gold processing experience and Civmec’s excellent fabrication and construction capabilities.”

Gold Road’s feasibility study for Gruyere, delivered in October 2016, outlined a large-scale open pit mine feeding a 7.5 million tonne per annum (Mtpa) processing plant, producing an average 270,000 ounces of gold a year over a 13-year mine life.

Last month mining equipment manufacturer Outotec was awarded a €14 million ($20.6 million) contract by the ACJV for the delivery of process equipment at the Gruyere project.