$400m mining services contact for Gruyere gold project awarded to Downer

Stephanie Baker   |   December 19, 2017

A $400 million contract to provide mining services has been awarded to Downer for the Gruyere gold joint venture between Gold Fields and Gold Road Resources in Western Australia.

Downer’s scope of works include construction of haul roads, stockpiles and other infrastructure, drilling and blasting, loading and haulage of ore and waste, run of mine feed and technical services.

The five-year contract at the Eastern Goldfields site will see Downer have a peak workforce at Gruyere of around 170 people. Downer plans to launch construction of the operation in early 2018 with mining scheduled to start in the December 2018 quarter.

According to the the Gruyere JV, the mining services company was awarded the contract based on its price competitiveness, relevant experience on technically similar projects, demonstrated leadership in safety, environmental stewardship and community engagement.

General manager for Gruyere JV Steve Price said the awarded contract was a result of six months work that involved numerous capable contract mining companies.

“Downer was selected as the preferred business partner for the project as they led all facets of the key criteria set for the award of the mining contract,” Price said.

Gold Road formed the JV with South Africa’s Gold Fields in November last year after discovering the greenfields project located close to the Northern Territory border.

Mining activities at Gruyere include a fleet of 225-tonne payload dump trucks, 400-tonne excavators, production blasthole drills and support equipment to move around 31 million tonnes (Mt) of material a year.

According to Grant Fenn, Downer’s chief executive officer, the contractor is looking forward to working closely with the Gruyere project team to help develop the new mine.

“It will also build on our extensive operations in Western Australia, which includes providing mining services at the nearby Sunrise Dam gold mine as well as at Roy Hill, Cape Preston and Karara iron ore mines,” Fenn said.

Earlier in the week, Downer announced that it had parted ways with Adani as the major contractor on the Carmichael coal project in the Galilee Basin of Queensland.

With the Gruyere contact as well as the recent $312 million JV contract win with Ausenco at Carrapateena mine in South Australia, Downer will offset the loss of the Adani contract.

If you want to keep up to date with the latest project updates subscribe to Felix Project News today and receive industry news straight to your inbox.

Source: Australian Mining.
Stephanie Baker
As PlantMiner's Marketing Coordinator, Steph has an array of experience covering industry projects and works on creating and maintaining content for our blog so you are receiving the most relevant project and industry news.

Related Articles

Projects
EOI's invited for Stage One of $400m Ipswich Motorway: Rocklea to Darra project

The Queensland Department of Transport and Main Roads is seeking to enter into an Early Contractor Involvement procurement process for the $400 million Ipswich Motorway – Rocklea to Darra Stage 1 project. In an annoucemenet last week, Premier Annastacia Palaszczuk released the invitations to industry to bid for the work on one of South East Queensland's most significant road projects.  

Projects
Santos' $400m Arcadia gas project in QLD to create 300 construction jobs

Santos, together with its GLNG partners, will be investing more than $400 million towards the development of the Arcadia gas project in Queensland’s Bowen Basin.

Projects
$400m lithium processing facility in Kwinana waits for construction go-ahead

A $400 million lithium plant in Kwinana has been proposed by Chinese company Tianqi Lithium – a major stakeholder of Talison Lithium. Tianqi is now seeking development assessment panel approval for the processing facility from the Western Australian Government.

Get the latest project news

Formerly known as the PlantMiner blog, Felix Project News is Australia's top 10 Construction blog. Join thousands of construction and mining pros getting the best content right in their inbox.
  • updates on Australia's pipeline of state and federal projects
  • fresh contract awards from major contractors and builders

If you're looking to contact us about other matters, please contact us.