15/06/2017 - 10:46

Civmec-Amec JV awarded $298m Gruyere contract

15/06/2017 - 10:46

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A joint venture between Civmec and Amec Foster Wheeler has been formally awarded a $298 million engineering, procurement and construction contract for Gold Road Resources’ Gruyere gold project.

Civmec-Amec JV awarded $298m Gruyere contract
Pat Tallon says the project will benefit from Civmec's heavy engineering facility in Henderson. Photo: Attila Csaszar

A joint venture between Civmec and Amec Foster Wheeler Australia has been formally awarded a $298 million engineering, procurement and construction contract for Gold Road Resources’ Gruyere gold project.

Gold Road said the EPC contract for the design, procurement and installation of the process plant and associated infrastructure for Gruyere had been signed with the joint venture, with work to begin in August.

“This is another key milestone in the delivery of Gruyere into production and we look forward to work on the plant and associated infrastructure commencing in earnest on site,” Gold Road managing director Ian Murray said.

“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 WA more broadly.”

The Civmec-Amec JV,which is owned 50:50 by the two parties, was named preferred contractor for the EPC contract in April by Gold Road, which holds a 50 per cent stake in Gruyere alongside South African mining giant Gold Fields.

At peak, the joint venture expects to have a workforce of about 300 on site while between 30 and 50 jobs will be required at Civmec’s fabrication facility in Henderson.

Civmec chief executive Pat Tallon said the company was proud to be involved in the mining project.

Gruyere is expected to cost $514 million to bring into production.

Shares in Gold Road were 1.4 per cent higher to 72 cents each at 10:30am.

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