Earthworks project in Western Australia to create 150 jobs

Mining (5) — A view of nickel ore stockpiles at a port in Sta Cruz Zambales in northern Philippines, February 8, 2017. Reuters/Erik De Castro

Mining services organisation MACA has been designated as the preferred tenderer for the bulk earthworks package at the Gruyere gold project in Western Australia. Nevertheless, the mining company will be named the official contractor in April. The work is expected to begin before the end of the current financial year.

The exact value of the project, which will include constructing an access road, airstrip, earthworks for the processing plant followed by construction of a tailings storage facility, mine stripping and run-of-mine pad, has not been made clear. The company expects the project will take 15 months to complete. As part of the contract, MACA said it will be creating as many as 150 jobs.

“The Gruyere project is on the back of several minor civil works awards in Victoria and will help underpin the civil business into the next financial year,” Geoff Baker, MACA operations director, said. “Work in hand in the civil and infrastructure division for full year 2018 will be in excess of $60 million upon contract award.”

Gold Road announced on Monday that it had given its drilling contracts to DDH1 Drilling and Ranger Drilling Services for exploration of greenfields, including the Yamarna belt landholdings, worth $30 million. Meanwhile, the contract for engineering, procurement and construction has been named the Amec Foster Wheeler Civmec Joint Venture.

GR Engineering said that it will be furnishing the Anna Beadell borefield with pipeline and associated infrastructure. The borefield will be responsible for providing water to the project. As part of the power supply contract, the tenderer will build a gas pipeline, estimated to be 225 kilometres long, from the Eastern Goldfields Pipeline to Gruyere. Critical power station infrastructure will be also be constructed for the project.

Gold Road managing director and chief executive Ian Murray described the Gruyere mine as low-cost and long-life, which would result in benefits to several stakeholders. “The Gruyere joint venture has selected contractors who are aligned with our commitment to local community engagement,” Murray said. “As a pre ‐ requisite for contract award all of our contractors are required to identify and provide employment and contracting opportunities for our local communities.”

Last year, Gold Fields secured 50 percent stake in the project for $350 million. After being named the preferred contractor, MACA’s shares witnessed an increase of 6.5c, or 4.26 percent. With this, the company’s shares reached $1.59. Earlier, the same number was recorded at a higher value of $1.61.