THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) announced the signing of the Engineering Procurement and Construction (EPC) for the Gruyere gold project in Western Australia.
Gold Road Resources said the contract has been signed with the Amec Foster Wheeler Civmec Joint Venture (ACJV), allowing work on the design, procurement and installation of the process plant and associated infrastructure to commence.
“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 Resources managing director and CEO Ian Murray said in the company’s announcement to the Australian Securities Exchange.
“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.”
The execution of the contract follows on from ACJV being name as preferred contractor for the EPC work in April.
Gruyere is a 50:50 Joint Venture between Gold Road and Gold Fields, to form the Gruyere Joint Venture, managed by Gruyere Management Pty Ltd, a wholly-owned subsidiary of Gold Fields.
Gold Road explained the EPC contract executed by the Gruyere JV is a ‘lump sum, fixed price’ contract valued at $298 million.
The company stressed that ACJV has 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 process plant will be carried out at Civmec’s fabrication facility in Henderson, WA ‐ the largest heavy engineering facility of its kind in Australia.