Gruyere makes Downer deal

Gold Road Resources and Gold Fields’ joint venture Gruyere, currently developing the Gruyere gold project in Western Australia, has inked a A$400 million (US$309 million) mining services contract with Downer
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Staff reporter

The five-year deal, sealed thanks to favourable market conditions and a long-term partnership between the two, outlines a peak Downer workforce of about 170. And the announcement comes right at the heels of Downer losing its contract with Adani.

Construction on mining infrastructure, such as office quarters and workshops, at Gruyere is set to commence in the March quarter of next year.

The JV noted that it selected Downer due to its price competitiveness and relevant experience with projects that are technically similar. Additionally, the group, it said, has demonstrated leadership in safety, community engagement and environmental stewardship.

Mining activities at Gruyere, which Gold Road discovered in 2013, should begin by December 2018. Its fleet will include 225t payload dump trucks, 400t excavators, production blasthole drills and support equipment to support 31Mt/y of production.

The mine’s resources total 148My at 1.3 grams per ton, for 6.2 million ounces of contained gold.