Contracts awarded for Gold Road project

A suite of contract announcements has been made for Gold Road Resources' $507 million Gruyere project, including for GR Engineering Services, Maca and Civmec, while Macmahon Holdings said today it had been selected as preferred contractor for a new Queensland coal mine.

Shares in GR Engineering were up nearly 10 per cent by the close today after the company confirmed it would supply pipeline and associated infrastructure at the Anna Beadell borefield that will provide water for the Gruyere mining village.

For GR, it comes just two weeks after the company secured an engineering, procurement and construction contract with Gascoyne Resources for the Dalgaranga gold project.

Facilities manager Compass Group will provide camp management services, while McNally Group Contracting will install 360 rooms in the accommodation village, beginning this month.

Laverton-based contractor Desert Sands will undertake accommodation earthworks, while DDH1 Drilling and Ranger Drilling have won drilling contracts.

Maca has been selected as a preferred bidder for earthworks planned for an access road, airstrip, processing plant and tailings storage facility.

Shares in Maca were 4.3 per cent higher at the close.

Engineering, procurement and construction of the gold processing plant, administration office, workshop and utilities will likely be undertaken by a joint venture between Civmec and Amec Foster Wheeler, which was selected as a preferred bidder.

Coal

Macmahon Holdings was selected as the preferred contractor to establish and operate QCoal's Byerwen coal mine in the Bowen Basin, expected to last at least three years.

The value is still to be determined, however, with Macmahon saying in a release today it would likely start off under a cost reimbursable model.

Chief executive officer Michael Finnegan said it would mark the company’s re-entry to the Queensland market which it had exited in 2014.

“While there is still a lot of detail to be negotiated, we are buoyed by our selection as preferred contractor, which highlights our ability to compete for desirable new projects,” Mr Finnegan said.

Shares in the company were unchanged.