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$298m slice of Gold Road’s Gruyere build joint venture to create hundreds of jobs

Thursday, 15 June 2017

Hundreds of new jobs will be created after Gold Road Resources announced a $298 million engineering, procurement and installation contract for its Gruyere gold project 200km north-east of Laverton.

The Amec Foster Wheeler Civmec Joint Venture (ACJV) has won the contract for the processing plant and associated infrastructure at the project.

Gold Road managing director Ian Murray described it as a key milestone for the project, which is a 50/50 joint venture with South Africa's Gold Fields.

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

Gold Road said the ACJV had committed to maximising procurement through local Australian sources for the supply of steel and equipment for the project.

The steel and platework fabrication for the processing plant would be carried out at Civmec’s 200,000sqm fabrication facility at Henderson, providing work for between 30 and 50 people.

ACJV expects to have a total workforce of about 300 people on site at peak construction and will begin mobilising to Gruyere in August.

Amec Foster Wheeler mining director Greg Hayes said the ACJV combined Amec Foster Wheeler’s world-class gold processing experience and Civmec’s excellent Australian fabrication and construction capabilities.

Gold Road said it would release a more detailed project update later this month.

Gold Fields bought a half-share in Gold Road’s Gruyere project for $350 million in November last year.

And last month, the South African company lifted its stake in Gold Road Resources to 10 per cent.

The Gruyere project is being developed at a cost of more than $500 million and is expected to produce 270,000 ounces a year over an initial life of 13 years.

Gold was trading at $US1269.30/oz at 10.15am while shares in Gold Road were up 1¢ to 72¢.


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