GR Engineering Services Ltd has executed a subcontractor agreement with RUC Cementation Mining Contractors Pty Ltd in relation to work on Newmont’s Tanami gold mine in the Northern Territory of Australia.

RUC has been engaged by Newmont under a head contract to complete certain construction works for the Tanami Expansion 2 project. Included within this is shaft lining, equipment and headframe construction.

The scope of work for which GR Engineering is responsible comprises the construction and commissioning of the temporary and permanent works associated with the surface infrastructure.

Based on the current budget for the scope of work, it is anticipated that revenue from the subcontractor agreement will be approximately A$68 million ($51 million), GR Engineering said. Work is expected to be completed by April 2023.

Back in November, the two companies signed a “teaming agreement” related to the project.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have executed this first subcontractor agreement with RUC and we look forward to working with RUC to deliver safe and successful outcomes for Newmont and on other future projects. GR Engineering continues to build its pipeline of work for financial year 2022 and financial year 2023.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.