SYDNEY - [AAP] Downer EDI (ASX: DOW) has been awarded a $400 million contract to provide mining services at the Gruyere Gold Project in Western Australia.

As part of the five-year deal, Downer will work on construction of infrastructure such as roads and stockpiles, drilling, loading and haulage of ore and waste, run of mine feed and technical services.

The engineering company says construction will start early next year, while mining is scheduled to begin in the fourth quarter of the 2018 calendar year.

Chief executive Grant Fenn said the contract will build on Downer's 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.

"Downer is very pleased to have been awarded this contract and we look forward to working closely with the Gruyere Gold Project team to help them develop this new mine safely and successfully," Mr Fenn said on Wednesday.

The Gruyere Gold Project is a 50:50 joint venture between Gold Road Resources and Gold Fields.

In a joint statement released to the ASX on Wednesday, the companies said Downer was awarded the contract based on its price competitiveness, experience on similar projects, safety leadership and environmental and community engagement.

 

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