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Gruyere gets big budget boost and pipeline - West Australian

Thursday, 22 June 2017

Gold Road Resources and its joint venture partner Gold Fields have lifted the budget for their Gruyere mine from $500 million to $532 million and signed up APA Group to build a new gas pipeline and gas-fired power station for the project.

Gold Road said yesterday the extra spending would make Gruyere a more robust project, but delay the project by two months with completion now expected by December next year and first gold by early 2019.

APA will spend $180 million to build, own and operate a 198km gas pipeline linking off the company’s existing Eastern Goldfields pipeline, which provides gas to the Tropicana gold mine south of Gruyere, as well as a 45MW gas-fired power station on site.

APA will recoup the funds via a 15-year supply deal with Gold Road, which the company estimates will cost $585 million over the life of the agreement.

Natural gas will be paid for separately by the project partners and supplied to APA for power generation, and is not included in the $585 million forecast expenditure.

Gold Road said commissioning the 648-room worker village at Gruyere was expected by the end of this month.

MACA began work on the $49 million bulk earthworks contract at Gruyere in May.

It is expected to take 15 months to complete the main access road, borefield access tracks, sealed airstrip, process plant and tailings storage facility.


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