Gruyere joint venture partners, Gold Fields and Gold Road Resources, have increased their forecasted capital cost for the development to $621 million, 10 per cent higher than a June 2017 cost estimate.
The rise in costs does not, however, affect the JV’s plan for first gold at Gruyere during the June quarter of 2019.
Gold Fields and Gold Road have agreed to several changes that have led to the increase in development costs, including improvements to the operation and maintenance of the process plant and infrastructure, and bringing forward operating and capital expenditure.
The update has also been influenced by force majeure costs resulting from extreme rainfall earlier this year.
According to Gold Road, the overall project engineering and construction was 94 per cent and 61 per cent complete by July 27, with EPC construction 39 per cent complete.
“As the project enters the critical phase of construction and development, the owners’ team has been enhanced by project delivery experience and capacity ensuring the team is best placed to facilitate the timely delivery of the project in line with the final forecast capital cost and revised schedule,” the company announced.
Gruyere’s construction workforce is currently 440 and will peak at 600 during September.